Need To Know: Analysts Are Much More Bullish On Senao Networks, Inc. (GTSM:3558)

Celebrations may be in order for Senao Networks, Inc. (GTSM:3558) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

After this upgrade, Senao Networks' twin analysts are now forecasting revenues of NT$8.6b in 2021. This would be a solid 14% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 23% to NT$8.98. Previously, the analysts had been modelling revenues of NT$7.5b and earnings per share (EPS) of NT$7.49 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Senao Networks

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Senao Networks' past performance and to peers in the same industry. The analysts are definitely expecting Senao Networks' growth to accelerate, with the forecast 14% growth ranking favourably alongside historical growth of 2.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Senao Networks is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Senao Networks' future.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Senao Networks going out as far as 2021, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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