Eyebright Medical Technology (Beijing) Co., Ltd. Just Recorded A 22% Revenue Beat: Here's What Analysts Think

It's been a good week for Eyebright Medical Technology (Beijing) Co., Ltd. (SHSE:688050) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.9% to CN¥135. Eyebright Medical Technology (Beijing) reported revenues of CN¥310m, which blew past expectations. Statutory earnings per share (EPS) of CN¥0.98 came in 3.0% short of forecasts. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Eyebright Medical Technology (Beijing)

Taking into account the latest results, the current consensus from Eyebright Medical Technology (Beijing)'s five analysts is for revenues of CN¥1.39b in 2024. This would reflect a substantial 30% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.0% to CN¥3.40. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.27b and earnings per share (EPS) of CN¥3.63 in 2024. So it's pretty clear consensus is mixed on Eyebright Medical Technology (Beijing) after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

There's been no major changes to the price target of CN¥215, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Eyebright Medical Technology (Beijing), with the most bullish analyst valuing it at CN¥240 and the most bearish at CN¥174 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 42% growth on an annualised basis. That is in line with its 37% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 19% per year. So it's pretty clear that Eyebright Medical Technology (Beijing) is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Eyebright Medical Technology (Beijing). Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at CN¥215, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Eyebright Medical Technology (Beijing). Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Eyebright Medical Technology (Beijing) going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Eyebright Medical Technology (Beijing) that we have uncovered.

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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.