Analysts Have Made A Financial Statement On Shenzhen Mindray Bio-Medical Electronics Co., Ltd.'s (SZSE:300760) First-Quarter Report

It's been a good week for Shenzhen Mindray Bio-Medical Electronics Co., Ltd. (SZSE:300760) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.1% to CN¥305. Shenzhen Mindray Bio-Medical Electronics missed revenue estimates by 2.4%, coming in atCN¥9.4b, although statutory earnings per share (EPS) of CN¥2.61 beat expectations, coming in 5.0% ahead of analyst estimates. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Shenzhen Mindray Bio-Medical Electronics

Taking into account the latest results, the consensus forecast from Shenzhen Mindray Bio-Medical Electronics' 27 analysts is for revenues of CN¥41.6b in 2024. This reflects a solid 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 14% to CN¥11.48. In the lead-up to this report, the analysts had been modelling revenues of CN¥42.7b and earnings per share (EPS) of CN¥11.53 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The consensus has reconfirmed its price target of CN¥396, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Shenzhen Mindray Bio-Medical Electronics' market value. 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 Shenzhen Mindray Bio-Medical Electronics at CN¥453 per share, while the most bearish prices it at CN¥325. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Shenzhen Mindray Bio-Medical Electronics shareholders.

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 period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 18% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 20% per year. So although Shenzhen Mindray Bio-Medical Electronics is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at CN¥396, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Shenzhen Mindray Bio-Medical Electronics. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Shenzhen Mindray Bio-Medical Electronics analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Shenzhen Mindray Bio-Medical Electronics .

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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.