Earnings Miss: Shanghai MicroPort Endovascular MedTech Co., Ltd. Missed EPS By 16% And Analysts Are Revising Their Forecasts

It's been a good week for Shanghai MicroPort Endovascular MedTech Co., Ltd. (SHSE:688016) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.2% to CN¥85.26. Shanghai MicroPort Endovascular MedTech beat revenue forecasts by a solid 12% to hit CN¥429m. Statutory earnings per share fell 16% short of expectations, at CN¥1.04. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Shanghai MicroPort Endovascular MedTech

After the latest results, the ten analysts covering Shanghai MicroPort Endovascular MedTech are now predicting revenues of CN¥1.47b in 2024. If met, this would reflect a solid 9.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.1% to CN¥5.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.54b and earnings per share (EPS) of CN¥5.22 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of CN¥163, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Shanghai MicroPort Endovascular MedTech's market value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Shanghai MicroPort Endovascular MedTech analyst has a price target of CN¥186 per share, while the most pessimistic values it at CN¥154. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Shanghai MicroPort Endovascular MedTech's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2024 being well below the historical 30% p.a. growth over the last five years. Compare this to the 103 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 19% per year. Factoring in the forecast slowdown in growth, it looks like Shanghai MicroPort Endovascular MedTech is forecast to grow at about the same rate as 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Still, earnings are more important to the intrinsic value of the business. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Shanghai MicroPort Endovascular MedTech going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Shanghai MicroPort Endovascular MedTech .

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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.