China Cyts Tours Holding Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

China Cyts Tours Holding Co., Ltd. (SHSE:600138) just released its latest quarterly report and things are not looking great. China Cyts Tours Holding delivered a grave earnings miss, with both revenues (CN¥2.4b) and statutory earnings per share (CN¥0.14) falling badly short of analyst expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for China Cyts Tours Holding

Taking into account the latest results, the consensus forecast from China Cyts Tours Holding's ten analysts is for revenues of CN¥11.5b in 2024. This reflects a notable 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 63% to CN¥0.36. In the lead-up to this report, the analysts had been modelling revenues of CN¥11.2b and earnings per share (EPS) of CN¥0.54 in 2024. While next year's revenue estimates increased, there was also a large cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

The consensus price target was unchanged at CN¥11.17, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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 China Cyts Tours Holding analyst has a price target of CN¥13.20 per share, while the most pessimistic values it at CN¥8.90. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that China Cyts Tours Holding's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 37% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 8.7% a year 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 15% per year. Not only are China Cyts Tours Holding'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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for China Cyts Tours Holding. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

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 China Cyts Tours Holding going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for China Cyts Tours Holding that you need to be mindful 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.