Hangzhou Onechance Tech Crop. Just Missed EPS By 53%: Here's What Analysts Think Will Happen Next

The analysts might have been a bit too bullish on Hangzhou Onechance Tech Crop. (SZSE:300792), given that the company fell short of expectations when it released its yearly results last week. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥1.3b) coming in 29% below what they had expected. Statutory earnings per share of CN¥0.46 fell 53% short. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Hangzhou Onechance Tech Crop

Taking into account the latest results, the current consensus from Hangzhou Onechance Tech Crop's three analysts is for revenues of CN¥1.82b in 2024. This would reflect a substantial 41% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 174% to CN¥1.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.06b and earnings per share (EPS) of CN¥1.16 in 2024. It looks like there's been a meaningful change to the consensus view following the recent earnings report, with the analysts making a substantial drop in to revenue forecasts and a small increase to to next year's earnings estimates.

The consensus price target fell 32% to CN¥18.00, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Hangzhou Onechance Tech Crop's rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.4% p.a. 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 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hangzhou Onechance Tech Crop 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 Hangzhou Onechance Tech Crop's earnings potential next year. They also downgraded Hangzhou Onechance Tech Crop's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hangzhou Onechance Tech Crop's future valuation.

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 Hangzhou Onechance Tech Crop 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 Hangzhou Onechance Tech Crop .

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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.