NAURA Technology Group Co., Ltd. (SZSE:002371) shareholders are probably feeling a little disappointed, since its shares fell 6.1% to CN¥239 in the week after its latest first-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at CN¥2.1b, statutory earnings beat expectations by a notable 227%, coming in at CN¥0.39 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for NAURA Technology Group

Taking into account the latest results, the current consensus from NAURA Technology Group's eleven analysts is for revenues of CN¥12.8b in 2022, which would reflect a sizeable 23% increase on its sales over the past 12 months. Statutory earnings per share are predicted to shoot up 30% to CN¥3.00. Before this earnings report, the analysts had been forecasting revenues of CN¥13.6b and earnings per share (EPS) of CN¥3.18 in 2022. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of CN¥356, suggesting the downgrades are not expected to have a long-term impact on NAURA Technology Group's valuation. 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. There are some variant perceptions on NAURA Technology Group, with the most bullish analyst valuing it at CN¥437 and the most bearish at CN¥266 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NAURA Technology Group's past performance and to peers in the same industry. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 32% growth on an annualised basis. That is in line with its 34% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 23% annually. So although NAURA Technology Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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 NAURA Technology Group. They also downgraded their revenue estimates, although industry data suggests that NAURA Technology Group's revenues are expected to grow faster than the wider industry. The consensus price target held steady at CN¥356, with the latest estimates not enough to have an impact on their price targets.

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 NAURA Technology Group analysts - going out to 2024, and you can see them free on our platform here.

Even so, be aware that NAURA Technology Group is showing 3 warning signs in our investment analysis , and 1 of those can't be ignored...

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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.