Yangtze Optical Fibre And Cable Joint Stock Limited Company Just Missed EPS By 8.9%: Here's What Analysts Think Will Happen Next

Yangtze Optical Fibre And Cable Joint Stock Limited Company (HKG:6869) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like the results were a bit of a negative overall. While revenues of CN¥12b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.9% to hit CN¥0.89 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the consensus forecast from Yangtze Optical Fibre And Cable Limited's five analysts is for revenues of CN¥12.8b in 2025. This reflects a reasonable 4.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 28% to CN¥1.14. Before this earnings report, the analysts had been forecasting revenues of CN¥12.9b and earnings per share (EPS) of CN¥1.16 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Yangtze Optical Fibre And Cable Limited

The consensus price target rose 5.2% to HK$11.63despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Yangtze Optical Fibre And Cable Limited's earnings by assigning a price premium. 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. Currently, the most bullish analyst values Yangtze Optical Fibre And Cable Limited at HK$18.61 per share, while the most bearish prices it at HK$9.03. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Yangtze Optical Fibre And Cable Limited's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Yangtze Optical Fibre And Cable Limited.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Yangtze Optical Fibre And Cable Limited's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Yangtze Optical Fibre And Cable Limited analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 4 warning signs for Yangtze Optical Fibre And Cable Limited (of which 1 doesn't sit too well with us!) 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.