Huizhou Desay SV Automotive Co., Ltd. Beat Revenue Forecasts By 6.0%: Here's What Analysts Are Forecasting Next

Huizhou Desay SV Automotive Co., Ltd. (SZSE:002920) just released its annual report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 6.0% to hit CN¥22b. Statutory earnings per share (EPS) came in at CN¥2.80, some 5.0% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Huizhou Desay SV Automotive

Taking into account the latest results, the most recent consensus for Huizhou Desay SV Automotive from 19 analysts is for revenues of CN¥27.7b in 2024. If met, it would imply a sizeable 26% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 30% to CN¥3.61. In the lead-up to this report, the analysts had been modelling revenues of CN¥27.0b and earnings per share (EPS) of CN¥3.69 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a sizeable to revenue, the consensus also made a small dip in its earnings per share forecasts.

The consensus price target was unchanged at CN¥138, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Huizhou Desay SV Automotive analyst has a price target of CN¥175 per share, while the most pessimistic values it at CN¥98.80. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Huizhou Desay SV Automotive shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 32% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 15% per year. 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Huizhou Desay SV Automotive going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Huizhou Desay SV Automotive (1 is concerning!) that you need to take into consideration.

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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.