Wens Foodstuff Group Co., Ltd. Just Beat EPS By 12%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Wens Foodstuff Group Co., Ltd. (SZSE:300498) filed its second-quarter result this time last week. The early response was not positive, with shares down 3.7% to CN¥16.89 in the past week. Revenues CN¥25b disappointed slightly, at8.6% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of CN¥0.39 coming in 12% above what was anticipated. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Wens Foodstuff Group

Taking into account the latest results, the current consensus from Wens Foodstuff Group's 13 analysts is for revenues of CN¥107.4b in 2024. This would reflect a decent 13% increase on its revenue over the past 12 months. Earnings are expected to improve, with Wens Foodstuff Group forecast to report a statutory profit of CN¥1.44 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥107.4b and earnings per share (EPS) of CN¥1.05 in 2024. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target was unchanged at CN¥22.96, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Wens Foodstuff Group analyst has a price target of CN¥25.53 per share, while the most pessimistic values it at CN¥17.00. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Wens Foodstuff Group's growth to accelerate, with the forecast 27% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.6% 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 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Wens Foodstuff Group to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Wens Foodstuff Group following these results. 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. The consensus price target held steady at CN¥22.96, with the latest estimates not enough to have an impact on their price targets.

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 Wens Foodstuff Group going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether Wens Foodstuff Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.