Suofeiya Home Collection Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Suofeiya Home Collection Co., Ltd. (SZSE:002572) had a good week, as its shares rose 4.0% to close at CN¥17.13 following the release of its quarterly results. Revenue of CN¥2.1b surpassed estimates by 8.9%, although statutory earnings per share missed badly, coming in 22% below expectations at CN¥0.17 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Suofeiya Home Collection

Taking into account the latest results, the current consensus from Suofeiya Home Collection's 21 analysts is for revenues of CN¥13.0b in 2024. This would reflect a notable 8.2% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 10% to CN¥1.52. Before this earnings report, the analysts had been forecasting revenues of CN¥12.6b and earnings per share (EPS) of CN¥1.49 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of CN¥18.44, implying that the uplift in revenue is not expected to greatly contribute to Suofeiya Home Collection's valuation in the near term. 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. There are some variant perceptions on Suofeiya Home Collection, with the most bullish analyst valuing it at CN¥24.00 and the most bearish at CN¥12.88 per share. 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. We can infer from the latest estimates that forecasts expect a continuation of Suofeiya Home Collection'shistorical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.2% per year. So although Suofeiya Home Collection is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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. They also upgraded their revenue forecasts, although the latest estimates suggest that Suofeiya Home Collection will grow in line with the overall 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Suofeiya Home Collection analysts - 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 2 warning signs for Suofeiya Home Collection 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.