Eoptolink Technology Inc., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Eoptolink Technology Inc., Ltd. (SZSE:300502) just released its latest first-quarter results and things are looking bullish. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 16% higher than the analysts had forecast, at CN¥1.1b, while EPS were CN¥0.46 beating analyst models by 53%. 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 Eoptolink Technology after the latest results.

Check out our latest analysis for Eoptolink Technology

Taking into account the latest results, the current consensus from Eoptolink Technology's eight analysts is for revenues of CN¥5.68b in 2024. This would reflect a substantial 57% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 64% to CN¥2.09. In the lead-up to this report, the analysts had been modelling revenues of CN¥5.43b and earnings per share (EPS) of CN¥1.75 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Eoptolink Technology 22% to CN¥71.49on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Eoptolink Technology, with the most bullish analyst valuing it at CN¥90.00 and the most bearish at CN¥40.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Eoptolink Technology's growth to accelerate, with the forecast 83% annualised growth to the end of 2024 ranking favourably alongside historical growth of 24% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Eoptolink Technology is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Eoptolink Technology's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Eoptolink Technology analysts - going out to 2026, and you can see them 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 Eoptolink 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.