Huizhou Desay SV Automotive Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for Huizhou Desay SV Automotive Co., Ltd. (SZSE:002920) shareholders, because the company has just released its latest second-quarter results, and the shares gained 2.8% to CN¥90.41. The results were mixed; although revenues of CN¥6.0b fell 14% short of analyst estimates, statutory earnings per share (EPS) of CN¥0.81 beat expectations by 13%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Huizhou Desay SV Automotive

Following the latest results, Huizhou Desay SV Automotive's 21 analysts are now forecasting revenues of CN¥28.1b in 2024. This would be a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 14% to CN¥3.67. In the lead-up to this report, the analysts had been modelling revenues of CN¥28.6b and earnings per share (EPS) of CN¥3.70 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With no major changes to earnings forecasts, the consensus price target fell 6.3% to CN¥127, suggesting that the analysts might have previously been hoping for an earnings upgrade. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Huizhou Desay SV Automotive analyst has a price target of CN¥180 per share, while the most pessimistic values it at CN¥91.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Huizhou Desay SV Automotive'shistorical trends, as the 28% annualised revenue growth to the end of 2024 is roughly in line with the 34% 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 it's pretty clear that Huizhou Desay SV Automotive is forecast to grow substantially 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 the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Huizhou Desay SV Automotive going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Huizhou Desay SV Automotive (1 is potentially serious!) that we have uncovered.

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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.