Shenzhen Comix Group Co., Ltd. Just Missed EPS By 62%: Here's What Analysts Think Will Happen Next

The annual results for Shenzhen Comix Group Co., Ltd. (SZSE:002301) were released last week, making it a good time to revisit its performance. Revenue of CN¥11b surpassed estimates by 7.6%, although statutory earnings per share missed badly, coming in 62% below expectations at CN¥0.11 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shenzhen Comix Group after the latest results.

See our latest analysis for Shenzhen Comix Group

After the latest results, the three analysts covering Shenzhen Comix Group are now predicting revenues of CN¥13.1b in 2024. If met, this would reflect a meaningful 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 196% to CN¥0.32. In the lead-up to this report, the analysts had been modelling revenues of CN¥12.0b and earnings per share (EPS) of CN¥0.40 in 2024. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

The consensus price target fell 8.4% to CN¥7.79, suggesting that the analysts are primarily focused on earnings as the driver of value for this business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Shenzhen Comix Group at CN¥8.10 per share, while the most bearish prices it at CN¥7.48. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 analysts are definitely expecting Shenzhen Comix Group's growth to accelerate, with the forecast 18% annualised growth to the end of 2024 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Shenzhen Comix Group is expected to grow at about the same rate as 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 Shenzhen Comix Group. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Shenzhen Comix Group 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 Shenzhen Comix Group 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.