Revenue Beat: Shennan Circuit Company Limited Exceeded Revenue Forecasts By 15% And Analysts Are Updating Their Estimates

Shareholders might have noticed that Shennan Circuit Company Limited (SZSE:002916) filed its third-quarter result this time last week. The early response was not positive, with shares down 4.5% to CN¥104 in the past week. It was a mildly positive result, with revenues exceeding expectations at CN¥4.7b, while statutory earnings per share (EPS) of CN¥0.98 were in line with analyst forecasts. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Shennan Circuit

Taking into account the latest results, the current consensus from Shennan Circuit's 14 analysts is for revenues of CN¥19.9b in 2025. This would reflect a meaningful 16% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 21% to CN¥4.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥19.7b and earnings per share (EPS) of CN¥4.63 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of CN¥107, showing that the business is executing well and in line with expectations. 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 Shennan Circuit at CN¥135 per share, while the most bearish prices it at CN¥68.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the 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. The analysts are definitely expecting Shennan Circuit's growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 18% annually. So it's clear that despite the acceleration in growth, Shennan Circuit is expected to grow meaningfully slower than the industry average.

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 Shennan Circuit's revenue is expected to perform worse 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.

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. At Simply Wall St, we have a full range of analyst estimates for Shennan Circuit going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Shennan Circuit that you need to take into consideration.

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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.