Investors in NAURA Technology Group Co., Ltd. (SZSE:002371) had a good week, as its shares rose 4.6% to close at CN¥319 following the release of its first-quarter results. It was a workmanlike result, with revenues of CN¥5.9b coming in 8.3% ahead of expectations, and statutory earnings per share of CN¥2.12, in line with analyst appraisals. 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 NAURA Technology Group after the latest results.
Taking into account the latest results, the consensus forecast from NAURA Technology Group's 18 analysts is for revenues of CN¥30.5b in 2024. This reflects a substantial 27% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 36% to CN¥11.38. In the lead-up to this report, the analysts had been modelling revenues of CN¥28.9b and earnings per share (EPS) of CN¥10.42 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of CN¥386, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. The most optimistic NAURA Technology Group analyst has a price target of CN¥428 per share, while the most pessimistic values it at CN¥302. 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.
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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 37% growth on an annualised basis. That is in line with its 39% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 23% per year. So it's pretty clear that NAURA Technology Group is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around NAURA Technology Group's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on NAURA Technology Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple NAURA Technology Group analysts - going out to 2026, and you can see them free on our platform here.
You can also see our analysis of NAURA Technology Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.