Qifu Technology, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders will be ecstatic, with their stake up 20% over the past week following Qifu Technology, Inc.'s (NASDAQ:QFIN) latest second-quarter results. Revenues were CN¥4.2b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at CN¥8.92, an impressive 24% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Qifu Technology

Taking into account the latest results, the ten analysts covering Qifu Technology provided consensus estimates of CN¥16.6b revenue in 2024, which would reflect a measurable 2.8% decline over the past 12 months. Per-share earnings are expected to ascend 16% to CN¥35.79. Before this earnings report, the analysts had been forecasting revenues of CN¥16.3b and earnings per share (EPS) of CN¥29.69 in 2024. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target rose 7.5% to US$27.57, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. There are some variant perceptions on Qifu Technology, with the most bullish analyst valuing it at US$31.31 and the most bearish at US$16.00 per share. This is a very narrow spread of estimates, implying either that Qifu Technology is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 5.6% annualised decline to the end of 2024. That is a notable change from historical growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. It's pretty clear that Qifu Technology's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Qifu Technology following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Qifu Technology'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.

With that in mind, we wouldn't be too quick to come to a conclusion on Qifu Technology. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Qifu Technology going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Qifu Technology that 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.