Shareholders of Geovis Technology Co.,Ltd (SHSE:688568) will be pleased this week, given that the stock price is up 10% to CN¥56.98 following its latest annual results. It was a workmanlike result, with revenues of CN¥2.5b coming in 9.1% ahead of expectations, and statutory earnings per share of CN¥0.94, in line with analyst appraisals. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Geovis TechnologyLtd's seven analysts is for revenues of CN¥3.57b in 2024. This reflects a major 42% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 41% to CN¥1.33. Before this earnings report, the analysts had been forecasting revenues of CN¥3.25b and earnings per share (EPS) of CN¥1.32 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.
The analysts increased their price target 8.5% to CN¥58.61, perhaps signalling that higher revenues are a strong leading indicator for Geovis TechnologyLtd'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. Currently, the most bullish analyst values Geovis TechnologyLtd at CN¥64.90 per share, while the most bearish prices it at CN¥52.32. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Geovis TechnologyLtd'shistorical trends, as the 42% annualised revenue growth to the end of 2024 is roughly in line with the 37% 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 21% per year. So although Geovis TechnologyLtd is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Geovis TechnologyLtd going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Geovis TechnologyLtd has 1 warning sign we think 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.