Shanghai United Imaging Healthcare Co., Ltd. Recorded A 13% Miss On Revenue: Analysts Are Revisiting Their Models

Shanghai United Imaging Healthcare Co., Ltd. (SHSE:688271) just released its latest half-year report and things are not looking great. Shanghai United Imaging Healthcare reported an earnings miss, with CN¥3.0b revenues falling 13% short of analyst models, and statutory earnings per share (EPS) of CN¥0.72 also coming in slightly below expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shanghai United Imaging Healthcare after the latest results.

View our latest analysis for Shanghai United Imaging Healthcare

Taking into account the latest results, the most recent consensus for Shanghai United Imaging Healthcare from 13 analysts is for revenues of CN¥12.9b in 2024. If met, it would imply a decent 13% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 11% to CN¥2.69. In the lead-up to this report, the analysts had been modelling revenues of CN¥13.7b and earnings per share (EPS) of CN¥2.89 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to CN¥134. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Shanghai United Imaging Healthcare at CN¥152 per share, while the most bearish prices it at CN¥110. 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.

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 analysts are definitely expecting Shanghai United Imaging Healthcare's growth to accelerate, with the forecast 27% annualised growth to the end of 2024 ranking favourably alongside historical growth of 11% per annum 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 19% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shanghai United Imaging Healthcare. They also downgraded Shanghai United Imaging Healthcare's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Shanghai United Imaging Healthcare's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Shanghai United Imaging Healthcare going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Shanghai United Imaging Healthcare that 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.