Earnings Miss: SUPCON Technology Co., Ltd. Missed EPS By 7.5% And Analysts Are Revising Their Forecasts

Investors in SUPCON Technology Co., Ltd. (SHSE:688777) had a good week, as its shares rose 6.8% to close at CN¥46.88 following the release of its quarterly results. Revenues of CN¥1.7b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥0.18, missing estimates by 7.5%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SUPCON Technology after the latest results.

Check out our latest analysis for SUPCON Technology

Taking into account the latest results, the most recent consensus for SUPCON Technology from 21 analysts is for revenues of CN¥11.1b in 2024. If met, it would imply a huge 24% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 19% to CN¥1.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥11.1b and earnings per share (EPS) of CN¥1.70 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at CN¥55.69, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on SUPCON Technology, with the most bullish analyst valuing it at CN¥63.00 and the most bearish at CN¥49.70 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SUPCON Technology's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of SUPCON Technology'shistorical trends, as the 34% annualised revenue growth to the end of 2024 is roughly in line with the 32% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So although SUPCON Technology is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SUPCON Technology's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥55.69, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple SUPCON Technology analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for SUPCON Technology (1 makes us a bit uncomfortable!) that you should be aware of.

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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.