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

As you might know, Mango Excellent Media Co., Ltd. (SZSE:300413) last week released its latest half-yearly, and things did not turn out so great for shareholders. Mango Excellent Media missed analyst forecasts, with revenues of CN¥7.0b and statutory earnings per share (EPS) of CN¥0.32, falling short by 2.5% and 5.1% respectively. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Mango Excellent Media

Taking into account the latest results, the consensus forecast from Mango Excellent Media's 19 analysts is for revenues of CN¥15.6b in 2024. This reflects a reasonable 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to crater 43% to CN¥1.02 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥16.0b and earnings per share (EPS) of CN¥1.07 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of CN¥26.64, suggesting the downgrades are not expected to have a long-term impact on Mango Excellent Media's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Mango Excellent Media analyst has a price target of CN¥32.00 per share, while the most pessimistic values it at CN¥20.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.1% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Mango Excellent Media is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at CN¥26.64, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

You should always think about risks though. Case in point, we've spotted 3 warning signs for Mango Excellent Media you should be aware of, and 2 of them are a bit unpleasant.

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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.