Grand Venture Technology Limited (SGX:JLB) came out with its half-year results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. It was a credible result overall, with revenues of S$67m and statutory earnings per share of S$0.059 both in line with analyst estimates, showing that Grand Venture Technology is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 analyst has changed their mind on Grand Venture Technology after the latest results.

Check out our latest analysis for Grand Venture Technology

Taking into account the latest results, the current consensus from Grand Venture Technology's one analyst is for revenues of S$141.0m in 2022, which would reflect a meaningful 8.6% increase on its sales over the past 12 months. Statutory per share are forecast to be S$0.048, approximately in line with the last 12 months. In the lead-up to this report, the analyst had been modelling revenues of S$148.3m and earnings per share (EPS) of S$0.063 in 2022. The analyst seem less optimistic after the recent results, reducing their sales forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analyst has cut their price target 20% to S$1.07.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Grand Venture Technology's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 46% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10.0% annually. So it's pretty clear that, while Grand Venture Technology's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Grand Venture Technology (of which 1 makes us a bit uncomfortable!) 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.