Qianhe Condiment and Food Co., Ltd. Just Missed EPS By 5.8%: Here's What Analysts Think Will Happen Next

Qianhe Condiment and Food Co., Ltd. (SHSE:603027) shareholders are probably feeling a little disappointed, since its shares fell 5.0% to CN¥15.49 in the week after its latest quarterly results. It looks like the results were a bit of a negative overall. While revenues of CN¥895m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.8% to hit CN¥0.15 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Qianhe Condiment and Food after the latest results.

Check out our latest analysis for Qianhe Condiment and Food

Taking into account the latest results, the consensus forecast from Qianhe Condiment and Food's nine analysts is for revenues of CN¥3.78b in 2024. This reflects a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 22% to CN¥0.64. In the lead-up to this report, the analysts had been modelling revenues of CN¥3.81b and earnings per share (EPS) of CN¥0.64 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CN¥19.94, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Qianhe Condiment and Food, with the most bullish analyst valuing it at CN¥23.54 and the most bearish at CN¥13.80 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Qianhe Condiment and Food shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Qianhe Condiment and Food'shistorical trends, as the 21% annualised revenue growth to the end of 2024 is roughly in line with the 21% annual growth 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 revenues grow 9.4% per year. So it's pretty clear that Qianhe Condiment and Food is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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. We have estimates - from multiple Qianhe Condiment and Food analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Qianhe Condiment and Food , and understanding these should be part of your investment process.

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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.