Last week, you might have seen that JSTI Group (SZSE:300284) released its annual result to the market. The early response was not positive, with shares down 2.1% to CN¥6.93 in the past week. It looks to have been a bit of a mixed result. While revenues of CN¥5.1b fell 15% short of what the analysts had predicted, statutory earnings per share (EPS) of CN¥0.45 exceeded expectations by 2.7%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on JSTI Group after the latest results.

View our latest analysis for JSTI Group

Taking into account the latest results, the current consensus from JSTI Group's two analysts is for revenues of CN¥6.22b in 2022, which would reflect a sizeable 21% increase on its sales over the past 12 months. Per-share earnings are expected to surge 23% to CN¥0.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥6.84b and earnings per share (EPS) of CN¥0.52 in 2022. The analysts seem less optimistic after the recent results, reducing their sales forecasts and making a real cut to earnings per share numbers.

The average price target climbed 24% to CN¥8.26despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

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. For example, we noticed that JSTI Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 21% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 1.2% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually. Not only are JSTI Group's revenues expected to improve, it seems that the analysts are also expecting it to grow faster 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 JSTI Group. They also downgraded their revenue estimates, although industry data suggests that JSTI Group's revenues are 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 in mind, we wouldn't be too quick to come to a conclusion on JSTI Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for JSTI Group going out as far as 2024, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with JSTI Group .

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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.