Camel Group Co., Ltd. Just Missed Revenue By 9.8%: Here's What Analysts Think Will Happen Next

Investors in Camel Group Co., Ltd. (SHSE:601311) had a good week, as its shares rose 5.3% to close at CN¥8.59 following the release of its quarterly results. Revenues came in 9.8% below expectations, at CN¥3.8b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.49 being roughly in line with analyst estimates. 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.

See our latest analysis for Camel Group

Taking into account the latest results, the most recent consensus for Camel Group from four analysts is for revenues of CN¥18.3b in 2025. If met, it would imply a major 21% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 44% to CN¥0.81. In the lead-up to this report, the analysts had been modelling revenues of CN¥18.1b and earnings per share (EPS) of CN¥0.87 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The average price target fell 10% to CN¥9.50, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. The analysts are definitely expecting Camel Group's growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Camel Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Camel Group. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Camel Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Camel Group going out to 2026, and you can see them free on our platform here.

Even so, be aware that Camel Group is showing 1 warning sign in our investment analysis , you should know about...

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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.