Eyebright Medical Technology (Beijing) Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Eyebright Medical Technology (Beijing) Co., Ltd. (SHSE:688050) filed its quarterly result this time last week. The early response was not positive, with shares down 6.6% to CN¥73.61 in the past week. Results were mixed, with revenues of CN¥375m exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were CN¥0.12 per share, -74% short of analyst expectations. 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 Eyebright Medical Technology (Beijing)

Taking into account the latest results, the most recent consensus for Eyebright Medical Technology (Beijing) from six analysts is for revenues of CN¥1.43b in 2024. If met, it would imply a solid 16% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 6.9% to CN¥1.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.38b and earnings per share (EPS) of CN¥2.06 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a solid to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

There's been no major changes to the price target of CN¥116, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Eyebright Medical Technology (Beijing), with the most bullish analyst valuing it at CN¥130 and the most bearish at CN¥96.39 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 35% growth on an annualised basis. That is in line with its 39% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 19% annually. So although Eyebright Medical Technology (Beijing) 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Eyebright Medical Technology (Beijing) analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Eyebright Medical Technology (Beijing) , and understanding it should be part of your investment process.

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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.