Kyland Technology Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

The analyst might have been a bit too bullish on Kyland Technology Co., Ltd. (SZSE:300353), given that the company fell short of expectations when it released its yearly results last week. Unfortunately, Kyland Technology delivered a serious earnings miss. Revenues of CN¥1.0b were 12% below expectations, and statutory earnings per share of CN¥0.06 missed estimates by 76%. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 estimate to see what could be in store for next year.

See our latest analysis for Kyland Technology

Taking into account the latest results, the consensus forecast from Kyland Technology's lone analyst is for revenues of CN¥1.31b in 2025. This reflects a major 27% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 1,030% to CN¥0.71. Before this earnings report, the analyst had been forecasting revenues of CN¥1.46b and earnings per share (EPS) of CN¥0.43 in 2025. There's been a definite change in sentiment after these results, with the analyst delivering a to next year's revenue estimates, while at the same time substantially upgrading EPS. It's almost as though the business is anticipated to reduce its focus on growth to enhance profitability.

The average price target increased 8.0% to CN¥15.84, with the analyst signalling that the improved earnings outlook is more important to the company's valuation than its revenue.

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 analyst is definitely expecting Kyland Technology's growth to accelerate, with the forecast 27% annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Kyland Technology to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kyland Technology's earnings potential next year. They also downgraded Kyland Technology's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Kyland Technology , and understanding this should be part of your investment process.

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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.