Wus Printed Circuit (Kunshan) Co., Ltd. Just Beat Revenue By 11%: Here's What Analysts Think Will Happen Next

Last week saw the newest second-quarter earnings release from Wus Printed Circuit (Kunshan) Co., Ltd. (SZSE:002463), an important milestone in the company's journey to build a stronger business. Wus Printed Circuit (Kunshan) beat revenue forecasts by a solid 11% to hit CN¥2.8b. Statutory earnings per share came in at CN¥0.79, in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Wus Printed Circuit (Kunshan)

Taking into account the latest results, the most recent consensus for Wus Printed Circuit (Kunshan) from 14 analysts is for revenues of CN¥12.0b in 2024. If met, it would imply a decent 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 21% to CN¥1.37. Before this earnings report, the analysts had been forecasting revenues of CN¥11.6b and earnings per share (EPS) of CN¥1.19 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of CN¥41.84, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Wus Printed Circuit (Kunshan) at CN¥49.50 per share, while the most bearish prices it at CN¥35.00. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Wus Printed Circuit (Kunshan)'s growth to accelerate, with the forecast 29% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.1% 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Wus Printed Circuit (Kunshan) is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Wus Printed Circuit (Kunshan) following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. 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 in mind, we wouldn't be too quick to come to a conclusion on Wus Printed Circuit (Kunshan). Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Wus Printed Circuit (Kunshan) analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Wus Printed Circuit (Kunshan) is showing 1 warning sign in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.