Shenzhen H&T Intelligent Control Co.Ltd Just Missed Earnings - But Analysts Have Updated Their Models

Shenzhen H&T Intelligent Control Co.Ltd (SZSE:002402) shareholders are probably feeling a little disappointed, since its shares fell 8.2% to CN¥11.60 in the week after its latest yearly results. Statutory earnings per share fell badly short of expectations, coming in at CN¥0.36, some 36% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at CN¥7.5b. 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.

View our latest analysis for Shenzhen H&T Intelligent ControlLtd

After the latest results, the seven analysts covering Shenzhen H&T Intelligent ControlLtd are now predicting revenues of CN¥9.26b in 2024. If met, this would reflect a major 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 66% to CN¥0.59. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥9.46b and earnings per share (EPS) of CN¥0.79 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CN¥18.45 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. There are some variant perceptions on Shenzhen H&T Intelligent ControlLtd, with the most bullish analyst valuing it at CN¥19.00 and the most bearish at CN¥17.34 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The analysts are definitely expecting Shenzhen H&T Intelligent ControlLtd's growth to accelerate, with the forecast 23% 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 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shenzhen H&T Intelligent ControlLtd to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Shenzhen H&T Intelligent ControlLtd's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at CN¥18.45, 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 Shenzhen H&T Intelligent ControlLtd analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Shenzhen H&T Intelligent ControlLtd has 2 warning signs we think 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.