Shareholders will be ecstatic, with their stake up 103% over the past week following Jiayin Group Inc.'s (NASDAQ:JFIN) latest first-quarter results. Revenues were CN¥314m, and Jiayin Group was a dismal 10% short of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 see what the analyst is expecting for next year.
Following the recent earnings report, the consensus from sole analyst covering Jiayin Group is for revenues of CN¥1.67b in 2020, implying a perceptible 7.8% decline in sales compared to the last 12 months. Prior to the latest earnings, the analyst was forecasting revenues of CN¥1.67b in 2020, and did not provide an earnings per share estimate. It looks like the latest results have met expectations and confirmed that the business is performing in line with expectations, given there's been no real changes in the new revenue estimates.
The average price target rose 67% to US$4.00, with the analyst clearly having become more optimistic about Jiayin Group'sprospects following these results.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jiayin Group's past performance and to peers in the same industry. We would also point out that the forecast 7.8% revenue decline is better than the historical trend, which saw revenues shrink 31% annually over the past year
The Bottom Line
The most important thing to take away is that the analyst reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
One Jiayin Group broker/analyst has provided estimates out to 2020, which can be seen for free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Jiayin Group , and understanding it should be part of your investment process.
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