Foryou Corporation Just Beat Revenue Estimates By 6.1%

Last week saw the newest yearly earnings release from Foryou Corporation (SZSE:002906), an important milestone in the company's journey to build a stronger business. It was a workmanlike result, with revenues of CN¥10b coming in 6.1% ahead of expectations, and statutory earnings per share of CN¥1.24, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Foryou from twelve analysts is for revenues of CN¥12.6b in 2025. If met, it would imply a sizeable 24% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 33% to CN¥1.65. In the lead-up to this report, the analysts had been modelling revenues of CN¥11.9b and earnings per share (EPS) of CN¥1.64 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

See our latest analysis for Foryou

It may not be a surprise to see thatthe analysts have reconfirmed their price target of CN¥42.72, implying that the uplift in revenue is not expected to greatly contribute to Foryou's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Foryou, with the most bullish analyst valuing it at CN¥52.00 and the most bearish at CN¥25.50 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Foryou's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 24% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So although Foryou is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Foryou. Long-term earnings power is much more important than next year's profits. We have forecasts for Foryou going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Foryou that you should be aware of.

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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.