Results: Shandong Publishing&Media Co.,Ltd Exceeded Expectations And The Consensus Has Updated Its Estimates

Last week saw the newest annual earnings release from Shandong Publishing&Media Co.,Ltd (SHSE:601019), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of CN¥12b were what the analysts expected, Shandong Publishing&MediaLtd surprised by delivering a (statutory) profit of CN¥1.14 per share, an impressive 31% above what was forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Shandong Publishing&MediaLtd

Following the latest results, Shandong Publishing&MediaLtd's two analysts are now forecasting revenues of CN¥13.3b in 2024. This would be a meaningful 9.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to crater 28% to CN¥0.81 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CN¥13.2b and earnings per share (EPS) of CN¥0.94 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 7.1% to CN¥12.00, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Shandong Publishing&MediaLtd's growth to accelerate, with the forecast 9.1% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 13% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Shandong Publishing&MediaLtd is expected to grow slower 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 Shandong Publishing&MediaLtd. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shandong Publishing&MediaLtd's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Shandong Publishing&MediaLtd (1 is a bit concerning!) that you need to take into consideration.

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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.