Earnings Mistake: Here's what Tianrun Industrial Technology Co., Ltd. (SZSE:002283) analysts are predicting for this year

It's becoming a tough time for Tianrun Industrial Technology Co., Ltd. (SZSE:002283) announced disappointing full-year results a week ago that could have a noticeable impact on how the market views the stock. Tenrun Industrial Technology missed analyst estimates, with sales of C$4 billion and statutory earnings per share (EPS) of C$0.35, 5.1% and 5.4% lower, respectively. Analysts typically update their forecasts after each earnings report, and we can use their forecasts to determine whether their view of the company has changed or if there are any new concerns to be aware of. . So we've gathered the latest post-earnings statutory consensus forecasts to see what's in store for next year.

Check out our latest analysis for Tenrun Industrial Technology.

Considering the latest results, Tianrun Industry Technology's lone analyst consensus forecast is for revenue of CA$4.6b in 2024. This reflects a notable 15% improvement in revenue compared to the previous 12 months. Statutory earnings per share are expected to increase by 34% to CN 0.46. Prior to this earnings report, analysts had been forecasting that the company would report revenue of CA$4.91 billion and earnings per share (EPS) of CA$0.50 in 2024. Analysts aren't as bullish as they were prior to this earnings call, given the lower revenue estimates and weak revenue. Decline in earnings per share forecast.

The consensus price target fell 15% to CA$7.51, with the deteriorating earnings outlook clearly driving valuation expectations.

Of course, another way to analyze these forecasts is to measure them against the industry itself. The latest estimates indicate that Tianrun Industry Technology's growth rate is expected to accelerate significantly, with its forecast revenue growth of 15% per annum to the end of 2024, significantly faster than the past five years of 0.07% per annum. is. In contrast, our data shows that other companies in a similar industry (covered by analysts) are forecast to grow their revenue at 19% per year. So it's clear that despite the acceleration in growth, Tianrun Industry Technology's growth is expected to be significantly slower than the industry average.

conclusion

Most importantly, the analysts have revised down their earnings per share estimates, indicating a clear drop in sentiment following these results. On the downside, the company has also lowered its earnings forecast, with some forecasts suggesting it will do worse than the industry as a whole. The consensus price target has dropped significantly, and analysts don't seem reassured by the latest results, leading to a reduction in Tianrun Industrial Technology's future valuation.

Based on this idea, we think the long-term outlook for the business is far more relevant than next year's earnings. We publish analyst forecasts for Tianrun Industry Technology till 2025, which are available for free on our platform here.

That being said, you still need to consider the ever-present concern of investment risk. We've identified 1 warning sign Stronger collaboration with and understanding of Tianrun Industry Technology should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.