TianJin 712 Communication & Broadcasting Co., Ltd. Just Missed EPS By 47%: Here's What Analysts Think Will Happen Next

TianJin 712 Communication & Broadcasting Co., Ltd. (SHSE:603712) just released its latest annual report and things are not looking great. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥3.3b) coming in 27% below what they had expected. Statutory earnings per share of CN¥0.57 fell 47% short. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for TianJin 712 Communication & Broadcasting

Taking into account the latest results, the most recent consensus for TianJin 712 Communication & Broadcasting from six analysts is for revenues of CN¥4.95b in 2024. If met, it would imply a huge 51% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 136% to CN¥1.35. Before this earnings report, the analysts had been forecasting revenues of CN¥5.50b and earnings per share (EPS) of CN¥1.39 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the CN¥31.24 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values TianJin 712 Communication & Broadcasting at CN¥32.00 per share, while the most bearish prices it at CN¥30.47. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting TianJin 712 Communication & Broadcasting's growth to accelerate, with the forecast 51% annualised growth to the end of 2024 ranking favourably alongside historical growth of 19% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that TianJin 712 Communication & Broadcasting is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for TianJin 712 Communication & Broadcasting. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at CN¥31.24, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for TianJin 712 Communication & Broadcasting going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.