Proya Cosmetics Co.,Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Proya Cosmetics Co.,Ltd. (SHSE:603605) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Proya CosmeticsLtd beat earnings, with revenues hitting CN¥2.2b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 15%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Proya CosmeticsLtd

Taking into account the latest results, the consensus forecast from Proya CosmeticsLtd's 30 analysts is for revenues of CN¥11.1b in 2024. This reflects a decent 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 16% to CN¥3.78. In the lead-up to this report, the analysts had been modelling revenues of CN¥10.4b and earnings per share (EPS) of CN¥3.57 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of CN¥135, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic Proya CosmeticsLtd analyst has a price target of CN¥172 per share, while the most pessimistic values it at CN¥103. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We can infer from the latest estimates that forecasts expect a continuation of Proya CosmeticsLtd'shistorical trends, as the 23% annualised revenue growth to the end of 2024 is roughly in line with the 26% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 14% per year. So although Proya CosmeticsLtd is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Proya CosmeticsLtd's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Proya CosmeticsLtd 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 Proya CosmeticsLtd .

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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.