Revenue Beat: Inspur Electronic Information Industry Co., Ltd. Beat Analyst Estimates By 9.5%

As you might know, Inspur Electronic Information Industry Co., Ltd. (SZSE:000977) just kicked off its latest yearly results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 9.5% to hit CN¥115b. Statutory earnings per share (EPS) came in at CN¥1.56, some 5.0% above whatthe analysts had expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the most recent consensus for Inspur Electronic Information Industry from eleven analysts is for revenues of CN¥122.6b in 2025. If met, it would imply a reasonable 6.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 24% to CN¥1.92. Before this earnings report, the analysts had been forecasting revenues of CN¥119.9b and earnings per share (EPS) of CN¥1.92 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

See our latest analysis for Inspur Electronic Information Industry

The consensus price target increased 5.2% to CN¥60.12, with an improved revenue forecast carrying the promise of a more valuable business, in time. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Inspur Electronic Information Industry analyst has a price target of CN¥75.00 per share, while the most pessimistic values it at CN¥38.94. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Inspur Electronic Information Industry's revenue growth is expected to slow, with the forecast 6.8% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that Inspur Electronic Information Industry is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Inspur Electronic Information Industry going out to 2027, and you can see them free on our platform here..

You can also see whether Inspur Electronic Information Industry is carrying too much debt, and whether its balance sheet is healthy, for free 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.