Earnings Beat: Zhangzhou Pientzehuang Pharmaceutical., Ltd Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

A week ago, Zhangzhou Pientzehuang Pharmaceutical., Ltd (SHSE:600436) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Zhangzhou Pientzehuang Pharmaceutical beat earnings, with revenues hitting CN¥2.8b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 10%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Zhangzhou Pientzehuang Pharmaceutical

After the latest results, the twelve analysts covering Zhangzhou Pientzehuang Pharmaceutical are now predicting revenues of CN¥12.7b in 2025. If met, this would reflect a solid 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 19% to CN¥6.07. Before this earnings report, the analysts had been forecasting revenues of CN¥12.7b and earnings per share (EPS) of CN¥6.07 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥272. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Zhangzhou Pientzehuang Pharmaceutical, with the most bullish analyst valuing it at CN¥358 and the most bearish at CN¥170 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Zhangzhou Pientzehuang Pharmaceutical'shistorical trends, as the 13% annualised revenue growth to the end of 2025 is roughly in line with the 14% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 12% per year. It's clear that while Zhangzhou Pientzehuang Pharmaceutical's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CN¥272, 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. We have estimates - from multiple Zhangzhou Pientzehuang Pharmaceutical analysts - 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 Zhangzhou Pientzehuang Pharmaceutical .

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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.