Jiangsu King's Luck Brewery Joint-Stock Co.,Ltd. (SHSE:603369) Just Reported Earnings, And Analysts Cut Their Target Price

Last week, you might have seen that Jiangsu King's Luck Brewery Joint-Stock Co.,Ltd. (SHSE:603369) released its second-quarter result to the market. The early response was not positive, with shares down 5.6% to CN¥42.99 in the past week. It was a credible result overall, with revenues of CN¥2.6b and statutory earnings per share of CN¥0.74 both in line with analyst estimates, showing that Jiangsu King's Luck Brewery Ltd is executing in line with 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Jiangsu King's Luck Brewery Ltd

Following the latest results, Jiangsu King's Luck Brewery Ltd's 13 analysts are now forecasting revenues of CN¥12.4b in 2024. This would be a decent 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 7.0% to CN¥3.05. Before this earnings report, the analysts had been forecasting revenues of CN¥12.4b and earnings per share (EPS) of CN¥3.05 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target fell 6.7% to CN¥59.02, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. 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. Currently, the most bullish analyst values Jiangsu King's Luck Brewery Ltd at CN¥77.00 per share, while the most bearish prices it at CN¥45.40. 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.

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 Jiangsu King's Luck Brewery Ltd'shistorical trends, as the 17% annualised revenue growth to the end of 2024 is roughly in line with the 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although Jiangsu King's Luck Brewery Ltd is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Jiangsu King's Luck Brewery Ltd's future valuation.

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 Jiangsu King's Luck Brewery Ltd going out to 2026, and you can see them free on our platform here..

Even so, be aware that Jiangsu King's Luck Brewery Ltd is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

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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.