HUANLEJIA Food Group CO.,Ltd Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

HUANLEJIA Food Group CO.,Ltd (SZSE:300997) investors will be delighted, with the company turning in some strong numbers with its latest results. HUANLEJIA Food GroupLtd beat earnings, with revenues hitting CN¥1.9b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for HUANLEJIA Food GroupLtd

Taking into account the latest results, the current consensus from HUANLEJIA Food GroupLtd's dual analysts is for revenues of CN¥2.19b in 2024. This would reflect a solid 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 19% to CN¥0.75. In the lead-up to this report, the analysts had been modelling revenues of CN¥2.16b and earnings per share (EPS) of CN¥0.74 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 13% to CN¥18.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting HUANLEJIA Food GroupLtd's growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. HUANLEJIA Food GroupLtd is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on HUANLEJIA Food GroupLtd. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that HUANLEJIA Food GroupLtd is showing 2 warning signs in our investment analysis , you should know about...

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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.