Victory Giant Technology (HuiZhou)Co.,Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Last week saw the newest quarterly earnings release from Victory Giant Technology (HuiZhou)Co.,Ltd. (SZSE:300476), an important milestone in the company's journey to build a stronger business. The results were mixed; although revenues of CN¥2.5b fell 13% short of what the analysts had predicted, per-share (statutory) earnings of CN¥0.29 beat expectations by 32%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Victory Giant Technology (HuiZhou)Co.Ltd after the latest results.

See our latest analysis for Victory Giant Technology (HuiZhou)Co.Ltd

After the latest results, the four analysts covering Victory Giant Technology (HuiZhou)Co.Ltd are now predicting revenues of CN¥11.3b in 2024. If met, this would reflect a huge 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 43% to CN¥1.31. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥11.5b and earnings per share (EPS) of CN¥1.30 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥39.90. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Victory Giant Technology (HuiZhou)Co.Ltd analyst has a price target of CN¥46.80 per share, while the most pessimistic values it at CN¥33.00. 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 Victory Giant Technology (HuiZhou)Co.Ltd's past performance and to peers in the same industry. The analysts are definitely expecting Victory Giant Technology (HuiZhou)Co.Ltd's growth to accelerate, with the forecast 54% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Victory Giant Technology (HuiZhou)Co.Ltd is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Victory Giant Technology (HuiZhou)Co.Ltd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Victory Giant Technology (HuiZhou)Co.Ltd going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Victory Giant Technology (HuiZhou)Co.Ltd that you need to be mindful of.

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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.