Earnings Miss: Joyoung Co.,Ltd Missed EPS And Analysts Are Revising Their Forecasts

Joyoung Co.,Ltd (SZSE:002242) shareholders are probably feeling a little disappointed, since its shares fell 7.8% to CN¥10.00 in the week after its latest quarterly results. It looks like a pretty bad result, given that revenues fell 15% short of analyst estimates at CN¥1.8b, and the company reported a statutory loss of CN¥0.10 per share instead of the profit that the analysts had been forecasting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 JoyoungLtd

Following the latest results, JoyoungLtd's 13 analysts are now forecasting revenues of CN¥10.5b in 2025. This would be a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 271% to CN¥0.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥10.5b and earnings per share (EPS) of CN¥0.61 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at CN¥9.81, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on JoyoungLtd, with the most bullish analyst valuing it at CN¥14.09 and the most bearish at CN¥6.10 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. One thing stands out from these estimates, which is that JoyoungLtd is forecast to grow faster in the future than it has in the past, with revenues expected to display 13% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.7% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.5% per year. Not only are JoyoungLtd's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. At Simply Wall St, we have a full range of analyst estimates for JoyoungLtd going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 3 warning signs for JoyoungLtd you should be aware of.

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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.