The analysts might have been a bit too bullish on Sichuan Jiuyuan Yinhai Software.Co.,Ltd (SZSE:002777), given that the company fell short of expectations when it released its annual results last week. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥1.3b missed by 12%, and statutory earnings per share of CN¥0.41 fell short of forecasts by 23%. 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.
Taking into account the latest results, the current consensus from Sichuan Jiuyuan Yinhai Software.Co.Ltd's two analysts is for revenues of CN¥1.61b in 2024. This would reflect a decent 20% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 31% to CN¥0.54. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.85b and earnings per share (EPS) of CN¥0.70 in 2024. Indeed, we can see that the analysts are a lot more bearish about Sichuan Jiuyuan Yinhai Software.Co.Ltd's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.
The average price target climbed 7.4% to CN¥32.08despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Sichuan Jiuyuan Yinhai Software.Co.Ltd's growth to accelerate, with the forecast 20% annualised growth to the end of 2024 ranking favourably alongside historical growth of 9.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. Sichuan Jiuyuan Yinhai Software.Co.Ltd is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Sichuan Jiuyuan Yinhai Software.Co.Ltd going out as far as 2026, and you can see them free on our platform here.
You can also see our analysis of Sichuan Jiuyuan Yinhai Software.Co.Ltd'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.