Viomi Technology’s FY 2023 Results Show Improved Net Loss and EPS, but Missed Analyst Expectations

Viomi Technology’s Full Year 2023 Earnings Fall Below Expectations

Viomi Technology (NASDAQ: VIOT) announced its full-year 2023 financial results, showing a decline in revenue and a narrowed net loss compared to the previous fiscal year. The company’s revenue was CN¥2.49 billion, down 23% from FY 2022, while the net loss was CN¥84.7 million, representing a 69% improvement from the previous year. Earnings per share (EPS) also showed improvement, with a loss of CN¥1.23 per share compared to CN¥3.97 in FY 2022.

Despite the improvements in net loss and EPS, both revenue and earnings missed analyst expectations by 12% and 140%, respectively. Looking ahead, Viomi Technology is forecasting a 21% average annual revenue growth over the next two years, outpacing the 5.1% growth forecast for the Consumer Durables industry in the US. However, Viomi Technology’s shares are down 8.8% from the previous week, reflecting some investor concerns about future performance and risks associated with investing in this company.

As with any investment, it’s important to consider the risks involved when investing in Viomi Technology or any other stock for that matter. Investors should be aware of potential warning signs before making an investment decision. In this case, there are two red flags that investors should be cautious about: firstly, Viomi Technology has been experiencing declining sales volumes; secondly, there is increasing competition from established players in China’s smart home market such as Xiaomi and Haier Smart Home Division.

If you have any feedback or concerns about this article or want to discuss investing strategies further then you can reach out to our team of experts at Simply Wall St directly or email our editorial team at Simply Wall St.

It is worth noting that this article is based on historical data and analyst forecasts and may not include all latest company announcements or qualitative information about current market trends and economic factors that could affect your investment decisions.

Simply Wall St does not hold positions in any mentioned stocks but encourages readers to conduct their own research before making investment decisions.

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