Beijing Gehua Catv Network Co.,Ltd. (SHSE:600037) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

Beijing Gehua Catv Network Co.,Ltd. (SHSE:600037) last week reported its latest half-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues were CN¥1.1b, with Beijing Gehua Catv NetworkLtd reporting some 3.7% below analyst expectations. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for Beijing Gehua Catv NetworkLtd

Taking into account the latest results, Beijing Gehua Catv NetworkLtd's lone analyst currently expect revenues in 2024 to be CN¥2.38b, approximately in line with the last 12 months. Per-share statutory losses are expected to explode, reaching CN¥0.02 per share. In the lead-up to this report, the analyst had been modelling revenues of CN¥2.55b and earnings per share (EPS) of CN¥0.24 in 2024. The analyst have made an abrupt about-face on Beijing Gehua Catv NetworkLtd, administering a small dip in to revenue forecasts and slashing the earnings outlook from a profit to loss.

The average price target fell 7.4% to CN¥6.48, implicitly signalling that lower earnings per share are a leading indicator for Beijing Gehua Catv NetworkLtd's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beijing Gehua Catv NetworkLtd's past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 3.0% 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 see their revenue grow 9.0% per year. So while a broad number of companies are forecast to grow, unfortunately Beijing Gehua Catv NetworkLtd is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analyst is expecting Beijing Gehua Catv NetworkLtd to become unprofitable next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.