Results: Midea Group Co., Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

Midea Group Co., Ltd. (SZSE:000333) just released its latest interim results and things are looking bullish. The company beat expectations with revenues of CN¥217b arriving 3.0% ahead of forecasts. Statutory earnings per share (EPS) were CN¥1.70, 6.9% ahead of estimates. 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 Midea Group

Taking into account the latest results, the consensus forecast from Midea Group's 22 analysts is for revenues of CN¥405.3b in 2024. This reflects an okay 3.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 3.5% to CN¥5.38. In the lead-up to this report, the analysts had been modelling revenues of CN¥403.4b and earnings per share (EPS) of CN¥5.38 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CN¥78.70, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Midea Group at CN¥88.30 per share, while the most bearish prices it at CN¥68.43. This is a very narrow spread of estimates, implying either that Midea Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Midea Group's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Midea Group'shistorical trends, as the 6.7% annualised revenue growth to the end of 2024 is roughly in line with the 8.1% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 8.5% annually. So it's pretty clear that Midea Group is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Midea Group's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥78.70, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Midea Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Midea Group going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.