Suzhou Sushi Testing Group Co.,Ltd. Just Missed EPS By 37%: Here's What Analysts Think Will Happen Next

Suzhou Sushi Testing Group Co.,Ltd. (SZSE:300416) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with CN¥489m revenue coming in 8.6% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.09 missed the mark badly, arriving some 37% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Suzhou Sushi Testing GroupLtd after the latest results.

See our latest analysis for Suzhou Sushi Testing GroupLtd

Following the latest results, Suzhou Sushi Testing GroupLtd's eight analysts are now forecasting revenues of CN¥2.67b in 2025. This would be a huge 34% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 64% to CN¥0.78. Before this earnings report, the analysts had been forecasting revenues of CN¥2.73b and earnings per share (EPS) of CN¥0.84 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the CN¥14.81 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Suzhou Sushi Testing GroupLtd at CN¥17.94 per share, while the most bearish prices it at CN¥13.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Suzhou Sushi Testing GroupLtd's past performance and to peers in the same industry. The analysts are definitely expecting Suzhou Sushi Testing GroupLtd's growth to accelerate, with the forecast 26% annualised growth to the end of 2025 ranking favourably alongside historical growth of 19% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Suzhou Sushi Testing GroupLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Suzhou Sushi Testing GroupLtd's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at CN¥14.81, 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 forecasts for Suzhou Sushi Testing GroupLtd going out to 2026, and you can see them free on our platform here.

Even so, be aware that Suzhou Sushi Testing GroupLtd is showing 2 warning signs in our investment analysis , you should know about...

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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.