Lepu Medical Technology (Beijing) Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Lepu Medical Technology (Beijing) Co., Ltd. (SZSE:300003) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥1.4b missed by 18%, and statutory earnings per share of CN¥0.05 fell short of forecasts by 71%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Lepu Medical Technology (Beijing)

Taking into account the latest results, the most recent consensus for Lepu Medical Technology (Beijing) from eight analysts is for revenues of CN¥8.60b in 2025. If met, it would imply a substantial 32% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 146% to CN¥0.94. Before this earnings report, the analysts had been forecasting revenues of CN¥8.74b and earnings per share (EPS) of CN¥0.98 in 2025. 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.

The average price target fell 17% to CN¥14.09, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. There are some variant perceptions on Lepu Medical Technology (Beijing), with the most bullish analyst valuing it at CN¥20.00 and the most bearish at CN¥10.40 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Lepu Medical Technology (Beijing) is forecast to grow faster in the future than it has in the past, with revenues expected to display 25% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 19% per year. So it looks like Lepu Medical Technology (Beijing) is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lepu Medical Technology (Beijing). 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 Lepu Medical Technology (Beijing)'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 Lepu Medical Technology (Beijing) going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Lepu Medical Technology (Beijing) (of which 1 is concerning!) 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.