Shanghai United Imaging Healthcare Co., Ltd. Just Missed EPS By 15%: Here's What Analysts Think Will Happen Next

It's been a good week for Shanghai United Imaging Healthcare Co., Ltd. (SHSE:688271) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.8% to CN¥133. It was not a great result overall. Although revenues beat expectations, hitting CN¥2.4b, statutory earnings missed analyst forecasts by 15%, coming in at just CN¥0.44 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Shanghai United Imaging Healthcare

Following the latest results, Shanghai United Imaging Healthcare's twelve analysts are now forecasting revenues of CN¥13.7b in 2024. This would be a notable 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 16% to CN¥2.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥14.1b and earnings per share (EPS) of CN¥2.90 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The consensus price target rose 15% to CN¥154, with the analysts apparently satisfied with the business performance despite lower revenue forecasts. 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 United Imaging Healthcare analyst has a price target of CN¥185 per share, while the most pessimistic values it at CN¥130. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Shanghai United Imaging Healthcare's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 18% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shanghai United Imaging Healthcare to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Shanghai United Imaging Healthcare going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Shanghai United Imaging Healthcare has 1 warning sign we think you should be aware of.

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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.