Yangtze Optical Fibre And Cable Joint Stock Limited Company (HKG:6869) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 15% higher than the analysts had forecast, at CN¥3.4b, while EPS were CN¥0.42 beating analyst models by 34%. 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 Yangtze Optical Fibre And Cable Limited after the latest results.

View our latest analysis for Yangtze Optical Fibre And Cable Limited

Taking into account the latest results, the current consensus from Yangtze Optical Fibre And Cable Limited's ten analysts is for revenues of CN¥12.7b in 2022, which would reflect a solid 9.3% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 59% to CN¥1.59. In the lead-up to this report, the analysts had been modelling revenues of CN¥12.4b and earnings per share (EPS) of CN¥1.17 in 2022. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the sizeable expansion in earnings per share expectations following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 15% to HK$15.97. 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$20.62 per share, while the most bearish prices it at HK$12.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Yangtze Optical Fibre And Cable Limited shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Yangtze Optical Fibre And Cable Limited is forecast to grow faster in the future than it has in the past, with revenues expected to display 20% annualised growth until the end of 2022. If achieved, this would be a much better result than the 1.7% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. So it looks like Yangtze Optical Fibre And Cable Limited is expected to grow faster than its competitors, at least for a while.

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 Yangtze Optical Fibre And Cable Limited following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for Yangtze Optical Fibre And Cable Limited going out to 2024, and you can see them free on our platform here.

You can also view our analysis of Yangtze Optical Fibre And Cable Limited's balance sheet, and whether we think Yangtze Optical Fibre And Cable Limited is carrying too much debt, for free on our platform here.

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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.