Revenue Beat: Jiayou International Logistics Co.,Ltd Beat Analyst Estimates By 6.0%

Jiayou International Logistics Co.,Ltd (SHSE:603871) just released its annual report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 6.0% to hit CN¥7.0b. Statutory earnings per share (EPS) came in at CN¥1.49, some 3.8% above whatthe analysts had expected. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Jiayou International LogisticsLtd

Taking into account the latest results, the consensus forecast from Jiayou International LogisticsLtd's seven analysts is for revenues of CN¥8.50b in 2024. This reflects a major 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 24% to CN¥1.85. Before this earnings report, the analysts had been forecasting revenues of CN¥8.13b and earnings per share (EPS) of CN¥1.77 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.0% to CN¥30.58per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Jiayou International LogisticsLtd analyst has a price target of CN¥36.30 per share, while the most pessimistic values it at CN¥28.10. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Jiayou International LogisticsLtd's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10% 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 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Jiayou International LogisticsLtd is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Jiayou International LogisticsLtd's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At Simply Wall St, we have a full range of analyst estimates for Jiayou International LogisticsLtd going out to 2026, and you can see them free on our platform here..

Even so, be aware that Jiayou International LogisticsLtd is showing 1 warning sign in our investment analysis , you should know about...

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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.