Guangdong TCL Smart Home Appliances Co., Ltd. (SZSE:002668) Analysts Are Pretty Bullish On The Stock After Recent Results

Guangdong TCL Smart Home Appliances Co., Ltd. (SZSE:002668) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Guangdong TCL Smart Home Appliances reported in line with analyst predictions, delivering revenues of CN¥18b and statutory earnings per share of CN¥0.94, suggesting the business is executing well and in line with its plan. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Guangdong TCL Smart Home Appliances

Following the latest results, Guangdong TCL Smart Home Appliances' three analysts are now forecasting revenues of CN¥20.2b in 2025. This would be a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to CN¥1.05. In the lead-up to this report, the analysts had been modelling revenues of CN¥20.3b and earnings per share (EPS) of CN¥0.95 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice gain to earnings per share expectations following these results.

The consensus price target rose 13% to CN¥14.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

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. It's pretty clear that there is an expectation that Guangdong TCL Smart Home Appliances' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.2% annually. Factoring in the forecast slowdown in growth, it looks like Guangdong TCL Smart Home Appliances is forecast to grow at about the same rate as 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 Guangdong TCL Smart Home Appliances' earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Guangdong TCL Smart Home Appliances going out to 2027, 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.