It's been a mediocre week for Chipsea Technologies (shenzhen) Corp. (SHSE:688595) shareholders, with the stock dropping 12% to CN¥42.22 in the week since its latest quarterly results. It looks like a pretty bad result, all things considered. Although revenues of CN¥189m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 44% to hit CN¥0.10 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Chipsea Technologies (shenzhen)

Taking into account the latest results, the consensus forecast from Chipsea Technologies (shenzhen)'s three analysts is for revenues of CN¥846.6m in 2022, which would reflect a meaningful 17% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to decrease 2.1% to CN¥0.45 in the same period. Before this earnings report, the analysts had been forecasting revenues of CN¥930.2m and earnings per share (EPS) of CN¥1.06 in 2022. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The analysts made no major changes to their price target of CN¥49.89, suggesting the downgrades are not expected to have a long-term impact on Chipsea Technologies (shenzhen)'s valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Chipsea Technologies (shenzhen) analyst has a price target of CN¥56.07 per share, while the most pessimistic values it at CN¥38.00. 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. It's clear from the latest estimates that Chipsea Technologies (shenzhen)'s rate of growth is expected to accelerate meaningfully, with the forecast 37% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 30% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 26% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Chipsea Technologies (shenzhen) is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although industry data suggests that Chipsea Technologies (shenzhen)'s revenues are 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Chipsea Technologies (shenzhen) going out to 2024, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Chipsea Technologies (shenzhen) (1 can't be ignored) 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.