Luenmei Quantum Co.,Ltd Just Missed Earnings - But Analysts Have Updated Their Models

Luenmei Quantum Co.,Ltd (SHSE:600167) just released its latest full-year report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥3.4b, statutory earnings missed forecasts by an incredible 20%, coming in at just CN¥0.38 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Luenmei QuantumLtd

After the latest results, the four analysts covering Luenmei QuantumLtd are now predicting revenues of CN¥3.61b in 2024. If met, this would reflect a satisfactory 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to CN¥0.42. In the lead-up to this report, the analysts had been modelling revenues of CN¥4.00b and earnings per share (EPS) of CN¥0.55 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

The consensus price target fell 12% to CN¥6.88, with the weaker earnings outlook clearly leading valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Luenmei QuantumLtd's rate of growth is expected to accelerate meaningfully, with the forecast 5.7% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.7% 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 9.6% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Luenmei QuantumLtd is expected to grow slower 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 estimates - from multiple Luenmei QuantumLtd analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Luenmei QuantumLtd you should be aware 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.