Revenue Beat: Shenzhen Topband Co., Ltd. Exceeded Revenue Forecasts By 6.6% And Analysts Are Updating Their Estimates

It's been a good week for Shenzhen Topband Co., Ltd. (SZSE:002139) shareholders, because the company has just released its latest first-quarter results, and the shares gained 9.2% to CN¥10.19. It was a workmanlike result, with revenues of CN¥2.3b coming in 6.6% ahead of expectations, and statutory earnings per share of CN¥0.41, in line with analyst appraisals. 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.

See our latest analysis for Shenzhen Topband

Taking into account the latest results, the current consensus from Shenzhen Topband's eight analysts is for revenues of CN¥10.7b in 2024. This would reflect a notable 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 14% to CN¥0.55. In the lead-up to this report, the analysts had been modelling revenues of CN¥10.3b and earnings per share (EPS) of CN¥0.53 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of CN¥13.02, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. There are some variant perceptions on Shenzhen Topband, with the most bullish analyst valuing it at CN¥15.00 and the most bearish at CN¥11.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 20% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 17% per year. It's clear that while Shenzhen Topband's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Shenzhen Topband's earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at CN¥13.02, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Shenzhen Topband. Long-term earnings power is much more important than next year's profits. We have forecasts for Shenzhen Topband 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.