Luxshare Precision Industry Co., Ltd. Just Missed EPS By 5.5%: Here's What Analysts Think Will Happen Next

Luxshare Precision Industry Co., Ltd. (SZSE:002475) just released its latest first-quarter report and things are not looking great. Results look to have been somewhat negative - revenue fell 2.6% short of analyst estimates at CN¥52b, and statutory earnings of CN¥0.34 per share missed forecasts by 5.5%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Luxshare Precision Industry

Taking into account the latest results, the current consensus from Luxshare Precision Industry's 27 analysts is for revenues of CN¥260.0b in 2024. This would reflect a meaningful 12% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 29% to CN¥1.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥276.4b and earnings per share (EPS) of CN¥1.99 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The consensus has reconfirmed its price target of CN¥43.53, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Luxshare Precision Industry's market value. 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. Currently, the most bullish analyst values Luxshare Precision Industry at CN¥63.00 per share, while the most bearish prices it at CN¥34.50. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Luxshare Precision Industry's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 35% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 17% annually. Factoring in the forecast slowdown in growth, it looks like Luxshare Precision Industry is forecast to grow at about the same rate as the wider industry.

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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Still, earnings are more important to the intrinsic value of the business. 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 estimates - from multiple Luxshare Precision Industry analysts - going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether Luxshare Precision 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.