Wuhan Raycus Fiber Laser Technologies Co.,Ltd. Just Missed EPS By 6.8%: Here's What Analysts Think Will Happen Next

It's been a good week for Wuhan Raycus Fiber Laser Technologies Co.,Ltd. (SZSE:300747) shareholders, because the company has just released its latest yearly results, and the shares gained 5.4% to CN¥21.75. It looks like the results were a bit of a negative overall. While revenues of CN¥3.7b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.8% to hit CN¥0.40 per share. 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 Wuhan Raycus Fiber Laser TechnologiesLtd

Following the latest results, Wuhan Raycus Fiber Laser TechnologiesLtd's seven analysts are now forecasting revenues of CN¥4.45b in 2024. This would be a sizeable 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 76% to CN¥0.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥4.45b and earnings per share (EPS) of CN¥0.72 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥24.52, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Wuhan Raycus Fiber Laser TechnologiesLtd, with the most bullish analyst valuing it at CN¥31.00 and the most bearish at CN¥13.40 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Wuhan Raycus Fiber Laser TechnologiesLtd'shistorical trends, as the 21% annualised revenue growth to the end of 2024 is roughly in line with the 18% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 19% per year. It's clear that while Wuhan Raycus Fiber Laser TechnologiesLtd's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Wuhan Raycus Fiber Laser TechnologiesLtd. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Wuhan Raycus Fiber Laser TechnologiesLtd analysts - going out to 2025, and you can see them free on our platform here.

You can also see our analysis of Wuhan Raycus Fiber Laser TechnologiesLtd's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.