Wuhan Jingce Electronic Group Co.,Ltd Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

Wuhan Jingce Electronic Group Co.,Ltd (SZSE:300567) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a pretty bad result overall, with revenues coming in 53% lower than the analysts predicted. Statutory earnings correspondingly nosedived, with Wuhan Jingce Electronic GroupLtd reporting a loss of CN¥0.06 per share, where the analysts were expecting a profit. 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 Wuhan Jingce Electronic GroupLtd after the latest results.

Check out our latest analysis for Wuhan Jingce Electronic GroupLtd

Taking into account the latest results, the most recent consensus for Wuhan Jingce Electronic GroupLtd from ten analysts is for revenues of CN¥2.89b in 2024. If met, it would imply a substantial 29% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 93% to CN¥0.86. In the lead-up to this report, the analysts had been modelling revenues of CN¥3.87b and earnings per share (EPS) of CN¥1.59 in 2024. It looks like sentiment has declined substantially in the aftermath of these results, with a large cut to revenue estimates and a large cut to earnings per share numbers as well.

Despite the cuts to forecast earnings, there was no real change to the CN¥95.55 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Wuhan Jingce Electronic GroupLtd, with the most bullish analyst valuing it at CN¥109 and the most bearish at CN¥80.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Wuhan Jingce Electronic GroupLtd's growth to accelerate, with the forecast 40% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.1% 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 Wuhan Jingce Electronic 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at CN¥95.55, 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 estimates - from multiple Wuhan Jingce Electronic GroupLtd analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Wuhan Jingce Electronic GroupLtd that 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.