Nanjing Vishee Medical Technology Co., Ltd Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for Nanjing Vishee Medical Technology Co., Ltd (SHSE:688580), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 3.4% short of analyst estimates at CN¥462m, and statutory earnings of CN¥2.00 per share missed forecasts by 8.4%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Nanjing Vishee Medical Technology

After the latest results, the twin analysts covering Nanjing Vishee Medical Technology are now predicting revenues of CN¥581.0m in 2024. If met, this would reflect a sizeable 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 32% to CN¥2.63. In the lead-up to this report, the analysts had been modelling revenues of CN¥590.3m and earnings per share (EPS) of CN¥2.80 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target fell 7.9% to CN¥77.00, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

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 analysts are definitely expecting Nanjing Vishee Medical Technology's growth to accelerate, with the forecast 26% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nanjing Vishee Medical Technology is expected to grow much 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 Nanjing Vishee Medical Technology. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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 Nanjing Vishee Medical Technology's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Nanjing Vishee Medical Technology. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Nanjing Vishee Medical Technology you should know about.

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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.