Henan Shuanghui Investment & Development Co.,Ltd. Just Missed EPS By 12%: Here's What Analysts Think Will Happen Next

Henan Shuanghui Investment & Development Co.,Ltd. (SZSE:000895) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were mixed, with revenues of CN¥14b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were CN¥0.37 per share, -12% below whatthe analysts had forecast. 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.

View our latest analysis for Henan Shuanghui Investment & DevelopmentLtd

Taking into account the latest results, the consensus forecast from Henan Shuanghui Investment & DevelopmentLtd's 15 analysts is for revenues of CN¥62.5b in 2024. This reflects a modest 6.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 14% to CN¥1.59. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥66.5b and earnings per share (EPS) of CN¥1.68 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the CN¥28.82 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Henan Shuanghui Investment & DevelopmentLtd analyst has a price target of CN¥33.00 per share, while the most pessimistic values it at CN¥19.00. 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 Henan Shuanghui Investment & DevelopmentLtd shareholders.

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. The analysts are definitely expecting Henan Shuanghui Investment & DevelopmentLtd's growth to accelerate, with the forecast 8.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. So it's clear that despite the acceleration in growth, Henan Shuanghui Investment & DevelopmentLtd is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will 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.

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 Henan Shuanghui Investment & DevelopmentLtd analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Henan Shuanghui Investment & DevelopmentLtd 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.