Han's Laser Technology Industry Group Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Han's Laser Technology Industry Group Co., Ltd. (SZSE:002008), given that the company fell short of expectations when it released its quarterly results last week. Han's Laser Technology Industry Group missed earnings this time around, with CN¥3.7b revenue coming in 5.3% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.23 also fell short of expectations by 18%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Han's Laser Technology Industry Group

Following last week's earnings report, Han's Laser Technology Industry Group's ten analysts are forecasting 2024 revenues to be CN¥14.6b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 5.1% to CN¥1.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥15.4b and earnings per share (EPS) of CN¥1.51 in 2024. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

The consensus has made no major changes to the price target of CN¥24.44, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. 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. The most optimistic Han's Laser Technology Industry Group analyst has a price target of CN¥35.00 per share, while the most pessimistic values it at CN¥18.30. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Han's Laser Technology Industry Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 8.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 16% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Han's Laser Technology Industry Group.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Han's Laser Technology Industry Group following these results. 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. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at CN¥24.44, with the latest estimates not enough to have an impact on their price targets.

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 Han's Laser Technology Industry Group going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Han's Laser Technology Industry Group has 2 warning signs (and 1 which doesn't sit too well with us) we think 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.