Victory Giant Technology (HuiZhou)Co.,Ltd. Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

The investors in Victory Giant Technology (HuiZhou)Co.,Ltd.'s (SZSE:300476) will be rubbing their hands together with glee today, after the share price leapt 38% to CN¥82.00 in the week following its full-year results. Victory Giant Technology (HuiZhou)Co.Ltd missed revenue estimates by 5.2%, coming in atCN¥11b, although statutory earnings per share (EPS) of CN¥1.35 beat expectations, coming in 2.9% ahead of analyst estimates. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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

Taking into account the latest results, the consensus forecast from Victory Giant Technology (HuiZhou)Co.Ltd's five analysts is for revenues of CN¥19.9b in 2025. This reflects a sizeable 86% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 269% to CN¥5.02. In the lead-up to this report, the analysts had been modelling revenues of CN¥14.6b and earnings per share (EPS) of CN¥2.15 in 2025. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

It will come as no surprise to learn that the analysts have increased their price target for Victory Giant Technology (HuiZhou)Co.Ltd 47% to CN¥64.00on the back of these upgrades. 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 Victory Giant Technology (HuiZhou)Co.Ltd at CN¥90.00 per share, while the most bearish prices it at CN¥38.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Victory Giant Technology (HuiZhou)Co.Ltd's growth to accelerate, with the forecast 86% annualised growth to the end of 2025 ranking favourably alongside historical growth of 15% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Victory Giant Technology (HuiZhou)Co.Ltd to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Victory Giant Technology (HuiZhou)Co.Ltd following these results. 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.

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 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..

You still need to take note of risks, for example - Victory Giant Technology (HuiZhou)Co.Ltd has 1 warning sign we think you should be aware 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.