China United Network Communications Limited (SHSE:600050) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, China United Network Communications Limited (SHSE:600050) last week released its latest first-quarter, and things did not turn out so great for shareholders. China United Network Communications missed analyst forecasts, with revenues of CN¥99b and statutory earnings per share (EPS) of CN¥0.078, falling short by 4.0% and 2.5% respectively. 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. 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 China United Network Communications

After the latest results, the 13 analysts covering China United Network Communications are now predicting revenues of CN¥400.0b in 2024. If met, this would reflect a satisfactory 6.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 13% to CN¥0.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥395.7b and earnings per share (EPS) of CN¥0.29 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥4.91. 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. Currently, the most bullish analyst values China United Network Communications at CN¥6.50 per share, while the most bearish prices it at CN¥3.80. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that China United Network Communications' rate of growth is expected to accelerate meaningfully, with the forecast 9.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that China United Network Communications is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider 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 in mind, we wouldn't be too quick to come to a conclusion on China United Network Communications. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple China United Network Communications analysts - going out to 2026, and you can see them 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 China United Network Communications that you need to be mindful 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.