BTG Hotels (Group) Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, BTG Hotels (Group) Co., Ltd. (SHSE:600258) just kicked off its latest first-quarter results with some very strong numbers. The company beat forecasts, with revenue of CN¥1.8b, some 3.3% above estimates, and statutory earnings per share (EPS) coming in at CN¥0.11, 32% ahead of expectations. 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 BTG Hotels (Group)

Taking into account the latest results, the current consensus from BTG Hotels (Group)'s 20 analysts is for revenues of CN¥8.45b in 2024. This would reflect an okay 5.9% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.4% to CN¥0.81. In the lead-up to this report, the analysts had been modelling revenues of CN¥8.15b and earnings per share (EPS) of CN¥0.79 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of CN¥18.80, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic BTG Hotels (Group) analyst has a price target of CN¥25.52 per share, while the most pessimistic values it at CN¥11.00. 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. For example, we noticed that BTG Hotels (Group)'s rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 8.0% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 4.1% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 17% per year. Although BTG Hotels (Group)'s revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BTG Hotels (Group)'s earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for BTG Hotels (Group) going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - BTG Hotels (Group) has 1 warning sign we think 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.