Maxscend Microelectronics Company Limited Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Investors in Maxscend Microelectronics Company Limited (SZSE:300782) had a good week, as its shares rose 5.7% to close at CN¥90.77 following the release of its first-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥1.2b, statutory earnings were in line with expectations, at CN¥2.18 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Maxscend Microelectronics

Following the latest results, Maxscend Microelectronics' 19 analysts are now forecasting revenues of CN¥5.78b in 2024. This would be a notable 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 17% to CN¥2.63. Before this earnings report, the analysts had been forecasting revenues of CN¥5.63b and earnings per share (EPS) of CN¥2.82 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a notable to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

The consensus price target fell 7.1% to CN¥141, suggesting that the analysts are primarily focused on earnings as the driver of value for this business. 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 Maxscend Microelectronics analyst has a price target of CN¥188 per share, while the most pessimistic values it at CN¥85.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 23% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So although Maxscend Microelectronics is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 forecasts for Maxscend Microelectronics going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Maxscend Microelectronics that you need to take into consideration.

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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.