Celebrations may be in order for Montage Technology Co., Ltd. (SHSE:688008) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company’s business prospects.

Following the upgrade, the latest consensus from Montage Technology’s 15 analysts is for revenues of CN¥4.8b in 2024, which would reflect a huge 83% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 100% to CN¥1.16. Prior to this update, the analysts had been forecasting revenues of CN¥3.9b and earnings per share (EPS) of CN¥1.15 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven’t changed their view on earnings per share.

View our latest analysis for Montage Technology

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It’s clear from the latest estimates that Montage Technology’s rate of growth is expected to accelerate meaningfully, with the forecast 124% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. Factoring in the forecast acceleration in revenue, it’s pretty clear that Montage Technology is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there’s been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year’s forecasts, it might be time to take another look at Montage Technology.

Still, the long-term prospects of the business are much more relevant than next year’s earnings. At Simply Wall St, we have a full range of analyst estimates for Montage Technology going out to 2026, and you can see them free on our platform here..

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.

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