Nanjing Bestway Intelligent Control Technology Co., Ltd. Just Missed EPS By 10%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Nanjing Bestway Intelligent Control Technology Co., Ltd. (SZSE:301195) filed its yearly result this time last week. The early response was not positive, with shares down 3.9% to CN¥36.07 in the past week. Revenues were in line with forecasts, at CN¥1.0b, although statutory earnings per share came in 10% below what the analysts expected, at CN¥1.69 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Nanjing Bestway Intelligent Control Technology

Taking into account the latest results, the consensus forecast from Nanjing Bestway Intelligent Control Technology's two analysts is for revenues of CN¥1.32b in 2024. This reflects a sizeable 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 33% to CN¥2.28. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.34b and earnings per share (EPS) of CN¥2.53 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.

The average price target fell 8.1% to CN¥47.89, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. It's clear from the latest estimates that Nanjing Bestway Intelligent Control Technology's rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 24% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nanjing Bestway Intelligent Control Technology to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nanjing Bestway Intelligent Control Technology. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Nanjing Bestway Intelligent Control Technology that you need to be mindful of.

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.