B-SOFT Co.,Ltd. (SZSE:300451) just released its latest yearly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥1.6b, statutory earnings missed forecasts by an incredible 90%, coming in at just CN¥0.02 per share. 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 most recent consensus for B-SOFTLtd from four analysts is for revenues of CN¥1.86b in 2024. If met, it would imply a meaningful 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 616% to CN¥0.17. Before this earnings report, the analysts had been forecasting revenues of CN¥2.16b and earnings per share (EPS) of CN¥0.29 in 2024. Indeed, we can see that the analysts are a lot more bearish about B-SOFTLtd's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.
The consensus price target fell 12% to CN¥8.49, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values B-SOFTLtd at CN¥10.00 per share, while the most bearish prices it at CN¥5.46. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting B-SOFTLtd's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 19% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, B-SOFTLtd is expected to grow slower than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for B-SOFTLtd. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of B-SOFTLtd's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for B-SOFTLtd going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for B-SOFTLtd that 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.