Zhongji Innolight Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Zhongji Innolight Co., Ltd. (SZSE:300308) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Zhongji Innolight delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting CN¥4.8b-15% above indicated-andCN¥1.28-29% above forecasts- respectively 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zhongji Innolight after the latest results.

Check out our latest analysis for Zhongji Innolight

Taking into account the latest results, the current consensus from Zhongji Innolight's 24 analysts is for revenues of CN¥25.2b in 2024. This would reflect a sizeable 84% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 66% to CN¥6.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥24.7b and earnings per share (EPS) of CN¥5.87 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.4% to CN¥192per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Zhongji Innolight at CN¥235 per share, while the most bearish prices it at CN¥125. 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. The analysts are definitely expecting Zhongji Innolight's growth to accelerate, with the forecast 125% 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 21% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Zhongji Innolight is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Zhongji Innolight's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Zhongji Innolight going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Zhongji Innolight (1 doesn't sit too well with us!) that you should be aware of.

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.