Suzhou Sushi Testing Group Co.,Ltd. (SZSE:300416) Just Recorded An Earnings Miss And Analysts Are Updating Their Numbers

Suzhou Sushi Testing Group Co.,Ltd. (SZSE:300416) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Suzhou Sushi Testing GroupLtd delivered a grave earnings miss, with both revenues (CN¥474m) and statutory earnings per share (CN¥0.12) falling badly short of analyst expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Suzhou Sushi Testing GroupLtd

Following the latest results, Suzhou Sushi Testing GroupLtd's six analysts are now forecasting revenues of CN¥2.23b in 2024. This would be a satisfactory 7.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 15% to CN¥0.64. Before this earnings report, the analysts had been forecasting revenues of CN¥2.53b and earnings per share (EPS) of CN¥0.77 in 2024. Indeed, we can see that the analysts are a lot more bearish about Suzhou Sushi Testing GroupLtd's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

Despite the cuts to forecast earnings, there was no real change to the CN¥19.63 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. The most optimistic Suzhou Sushi Testing GroupLtd analyst has a price target of CN¥23.70 per share, while the most pessimistic values it at CN¥14.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's pretty clear that there is an expectation that Suzhou Sushi Testing GroupLtd's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. Compare this to the 389 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 18% per year. So it's pretty clear that, while Suzhou Sushi Testing GroupLtd's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at CN¥19.63, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Suzhou Sushi Testing GroupLtd going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Suzhou Sushi Testing GroupLtd .

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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.