Hengdian Group Tospo Lighting Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Hengdian Group Tospo Lighting Co., Ltd. (SHSE:603303) last week released its latest annual, and things did not turn out so great for shareholders. Hengdian Group Tospo Lighting missed earnings this time around, with CN¥4.4b revenue coming in 5.2% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.74 also fell short of expectations by 13%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Hengdian Group Tospo Lighting

Taking into account the latest results, the most recent consensus for Hengdian Group Tospo Lighting from three analysts is for revenues of CN¥4.77b in 2025. If met, it would imply a reasonable 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 10% to CN¥0.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.00b and earnings per share (EPS) of CN¥0.95 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

The consensus price target fell 14% to CN¥15.00, with the weaker earnings outlook clearly leading valuation estimates.

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 Hengdian Group Tospo Lighting's growth to accelerate, with the forecast 7.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Hengdian Group Tospo Lighting is expected to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hengdian Group Tospo Lighting. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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. At Simply Wall St, we have a full range of analyst estimates for Hengdian Group Tospo Lighting going out to 2027, and you can see them free on our platform here..

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.