SonoScape Medical Corp. Just Missed Earnings; Here's What Analysts Are Forecasting Now

It's been a good week for SonoScape Medical Corp. (SZSE:300633) shareholders, because the company has just released its latest third-quarter results, and the shares gained 8.9% to CN¥35.48. Revenues missed expectations, with revenue of CN¥380m falling 17% short of forecasts. Earnings correspondingly dipped, with SonoScape Medical reporting a statutory loss of CN¥0.14 per share, where the analysts were expecting a profit. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for SonoScape Medical

After the latest results, the twelve analysts covering SonoScape Medical are now predicting revenues of CN¥2.99b in 2025. If met, this would reflect a huge 46% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 174% to CN¥1.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥3.07b and earnings per share (EPS) of CN¥1.59 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CN¥43.87 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 SonoScape Medical, with the most bullish analyst valuing it at CN¥49.40 and the most bearish at CN¥40.93 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting SonoScape Medical is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting SonoScape Medical's growth to accelerate, with the forecast 35% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. 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 SonoScape Medical 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 SonoScape Medical. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for SonoScape Medical going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - SonoScape Medical has 3 warning signs 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.