Dian Diagnostics Group Co.,Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Dian Diagnostics Group Co.,Ltd. (SZSE:300244) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Unfortunately, Dian Diagnostics GroupLtd delivered a serious earnings miss. Revenues of CN¥3.0b were 18% below expectations, and statutory earnings per share of CN¥0.037 missed estimates by 90%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Dian Diagnostics GroupLtd

After the latest results, the eleven analysts covering Dian Diagnostics GroupLtd are now predicting revenues of CN¥13.9b in 2024. If met, this would reflect a modest 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 472% to CN¥1.57. In the lead-up to this report, the analysts had been modelling revenues of CN¥15.7b and earnings per share (EPS) of CN¥1.72 in 2024. It looks like sentiment has fallen somewhat in the aftermath of these results, with a substantial drop in revenue estimates and a minor downgrade to earnings per share numbers as well.

Despite the cuts to forecast earnings, there was no real change to the CN¥27.31 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Dian Diagnostics GroupLtd analyst has a price target of CN¥40.00 per share, while the most pessimistic values it at CN¥18.50. 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.

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. We would highlight that Dian Diagnostics GroupLtd's revenue growth is expected to slow, with the forecast 7.6% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. Factoring in the forecast slowdown in growth, it seems obvious that Dian Diagnostics GroupLtd is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥27.31, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Dian Diagnostics GroupLtd 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 Dian Diagnostics GroupLtd 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.