Beijing Roborock Technology Co., Ltd. (SHSE:688169) Exceeded Expectations And The Analyst Consensus Has Been Reviewing Its Models

Beijing Roborock Technology Co., Ltd. (SHSE:688169) just released its latest quarterly results and things are looking bullish. Beijing Roborock Technology delivered a significant beat with revenue hitting CN¥1.8b and statutory EPS reaching CN¥3.03, both beating estimates by more than 10%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Beijing Roborock Technology

After the latest results, the 23 analysts covering Beijing Roborock Technology are now predicting revenues of CN¥10.9b in 2024. If met, this would reflect a meaningful 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to CN¥19.19. Before this earnings report, the analysts had been forecasting revenues of CN¥10.6b and earnings per share (EPS) of CN¥18.04 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.6% to CN¥430per share. 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 Beijing Roborock Technology analyst has a price target of CN¥575 per share, while the most pessimistic values it at CN¥320. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beijing Roborock Technology's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 19% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.6% annually. So although Beijing Roborock Technology is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Beijing Roborock Technology's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Beijing Roborock Technology 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 1 warning sign for Beijing Roborock Technology 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.