Inspur Electronic Information Industry Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Inspur Electronic Information Industry Co., Ltd. (SZSE:000977) filed its full-year result this time last week. The early response was not positive, with shares down 5.9% to CN¥35.51 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥66b, statutory earnings beat expectations 5.8%, with Inspur Electronic Information Industry reporting profits of CN¥1.18 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Inspur Electronic Information Industry

Taking into account the latest results, the current consensus from Inspur Electronic Information Industry's eleven analysts is for revenues of CN¥75.9b in 2024. This would reflect a notable 15% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 23% to CN¥1.48. In the lead-up to this report, the analysts had been modelling revenues of CN¥80.4b and earnings per share (EPS) of CN¥1.61 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of CN¥39.33, suggesting the downgrades are not expected to have a long-term impact on Inspur Electronic Information Industry's valuation. 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 Inspur Electronic Information Industry, with the most bullish analyst valuing it at CN¥47.00 and the most bearish at CN¥31.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Inspur Electronic Information Industry's past performance and to peers in the same industry. It's clear from the latest estimates that Inspur Electronic Information Industry's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.8% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 17% per year. Inspur Electronic Information Industry is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Inspur Electronic Information Industry. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Inspur Electronic Information Industry going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether Inspur Electronic Information Industry's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.