Maxscend Microelectronics Company Limited Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Maxscend Microelectronics Company Limited (SZSE:300782) last week released its latest annual, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥4.5b, statutory earnings missed forecasts by an incredible 33%, coming in at just CN¥0.75 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Following the latest results, Maxscend Microelectronics' 17 analysts are now forecasting revenues of CN¥5.27b in 2025. This would be a solid 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 49% to CN¥1.12. Before this earnings report, the analysts had been forecasting revenues of CN¥5.30b and earnings per share (EPS) of CN¥1.26 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

See our latest analysis for Maxscend Microelectronics

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥90.38, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Maxscend Microelectronics, with the most bullish analyst valuing it at CN¥162 and the most bearish at CN¥55.00 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Maxscend Microelectronics' growth to accelerate, with the forecast 18% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Maxscend Microelectronics is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Maxscend Microelectronics. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CN¥90.38, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Maxscend Microelectronics going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Maxscend Microelectronics (1 is a bit concerning!) that we have uncovered.

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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.