Mango Excellent Media Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Mango Excellent Media Co., Ltd. (SZSE:300413) just released its latest first-quarter report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥3.3b, statutory earnings missed forecasts by an incredible 29%, coming in at just CN¥0.25 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Mango Excellent Media

Taking into account the latest results, the most recent consensus for Mango Excellent Media from 19 analysts is for revenues of CN¥16.0b in 2024. If met, it would imply a modest 7.5% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dive 34% to CN¥1.23 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CN¥16.2b and earnings per share (EPS) of CN¥1.29 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at CN¥30.17, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Mango Excellent Media at CN¥39.27 per share, while the most bearish prices it at CN¥20.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes 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 Mango Excellent Media's growth to accelerate, with the forecast 10% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.1% 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 15% per year. So it's clear that despite the acceleration in growth, Mango Excellent Media is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Mango Excellent Media. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Mango Excellent Media. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Mango Excellent Media going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 3 warning signs for Mango Excellent Media (2 make us uncomfortable!) 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.