Longshine Technology Group Co., Ltd. missed out on profits, but analysts updated their model

It's becoming a tough time for Longguang Technology Group Co., Ltd. (SZSE:300682) announced disappointing annual results a week ago that could have a noticeable impact on how the market views the stock. Overall, the results were not very good. Revenue was slightly below analysts' expectations of C$4.7 billion, but statutory profit was 14% lower than expected, at just C$0.56 per share. Earnings earnings are an important time for investors as they can track a company's performance, see what analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to find out what analysts are expecting for next year.

Check out our latest analysis for Longshin Technology Group.

Following the latest results, the 11 analysts covering Longshine Technology Group are now predicting its revenues in 2024 of CA$5.36b. If achieved, this would reflect a significant 13% improvement in earnings compared to the previous 12 months. Statutory earnings per share are expected to increase by 25% to CN 0.70. Prior to this earnings report, analysts had expected 2024 sales of CA$6.29 billion and earnings per share (EPS) of CA$0.90. Indeed, we can see that analysts have become much more bearish on Longshine Technology Group's prospects. He released his latest financial results and significantly lowered his revenue forecast, as well as his EPS forecast.

So it's probably no surprise to learn that the analysts have cut their price target by 7.0% to RMB17.59. However, this is not the only conclusion that can be drawn from this data, as some investors like to consider the dispersion of analyst forecasts when assessing price targets. The most optimistic Longshin Technology Group analyst has a price target of CA$26.70 per share, while the most pessimistic has a price target of CA$13.00. Note the wide spread in analyst price targets. This means that there is a fairly wide range of possible scenarios for the underlying business.

While these estimates are interesting, it can be helpful to paint a broader stroke when comparing Longshine Technology Group's past performance and forecasts with other companies in its industry. Analysts predict that the same will happen in the period to the end of 2024, with revenue growth of 13% on an annualized basis. This is consistent with an annual growth rate of 13% over the past five years. In contrast, our data shows that other companies in a similar industry (covered by analysts) are forecast to see their revenue grow at 21% per year. So it's clear that Longshin Technology Group is expected to grow slower than similar companies in its industry.

conclusion

The biggest concern is that analysts have lowered their earnings per share forecasts, suggesting business headwinds may be ahead for Longguang Technology Group. 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 analysts have also lowered their price targets, suggesting that the latest news has increased their pessimism about the business's intrinsic value.

With this in mind, we think the long-term trajectory of the business is far more important for investors to consider. We have his forecasts for Longshin Technology Group to 2026 and you can see them for free on our platform here.

We must continue to be aware of the risks. For example, Longshine Technology Group: 1 warning sign I think you should know.

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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.