Results: Q Technology (Group) Company Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Q Technology (Group) Company Limited (HKG:1478) just released its half-year report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.3% to hit CN¥7.7b. Q Technology (Group) also reported a statutory profit of CN¥0.097, which was an impressive 21% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Q Technology (Group) after the latest results.

Check out our latest analysis for Q Technology (Group)

After the latest results, the 15 analysts covering Q Technology (Group) are now predicting revenues of CN¥15.5b in 2024. If met, this would reflect a satisfactory 5.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 69% to CN¥0.25. In the lead-up to this report, the analysts had been modelling revenues of CN¥14.7b and earnings per share (EPS) of CN¥0.26 in 2024. So it's pretty clear consensus is mixed on Q Technology (Group) after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

The consensus price target was unchanged at HK$5.12, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Q Technology (Group) analyst has a price target of HK$6.44 per share, while the most pessimistic values it at HK$3.76. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. One thing stands out from these estimates, which is that Q Technology (Group) is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 12% per year. So it looks like Q Technology (Group) is expected to grow at about the same rate as 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 Q Technology (Group). They also upgraded their revenue forecasts, although the latest estimates suggest that Q Technology (Group) will grow in line with the overall 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Q Technology (Group) going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Q Technology (Group) has 2 warning signs we think 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.