Earnings Miss: Lingyi iTech (Guangdong) Company Missed EPS By 12% And Analysts Are Revising Their Forecasts

Lingyi iTech (Guangdong) Company (SZSE:002600) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Statutory earnings per share of CN¥0.25 unfortunately missed expectations by 12%, although it was encouraging to see revenues of CN¥44b exceed expectations by 5.1%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Lingyi iTech (Guangdong)'s nine analysts is for revenues of CN¥50.1b in 2025. This reflects a decent 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 71% to CN¥0.43. In the lead-up to this report, the analysts had been modelling revenues of CN¥50.6b and earnings per share (EPS) of CN¥0.44 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Lingyi iTech (Guangdong)

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥10.00. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Lingyi iTech (Guangdong), with the most bullish analyst valuing it at CN¥11.00 and the most bearish at CN¥7.40 per share. 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.

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. It's clear from the latest estimates that Lingyi iTech (Guangdong)'s rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 18% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Lingyi iTech (Guangdong) is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lingyi iTech (Guangdong)'s revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥10.00, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Lingyi iTech (Guangdong) analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Lingyi iTech (Guangdong) 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.