Bloomage BioTechnology Corporation Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Bloomage BioTechnology Corporation Limited (SHSE:688363), given that the company fell short of expectations when it released its quarterly results last week. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥1.5b) coming in 23% below what they had expected. Statutory earnings per share of CN¥0.20 fell 69% 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.

View our latest analysis for Bloomage BioTechnology

Taking into account the latest results, the consensus forecast from Bloomage BioTechnology's 13 analysts is for revenues of CN¥6.17b in 2024. This reflects a satisfactory 6.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 35% to CN¥1.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥6.82b and earnings per share (EPS) of CN¥1.75 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 9.1% to CN¥65.43. 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. The most optimistic Bloomage BioTechnology analyst has a price target of CN¥131 per share, while the most pessimistic values it at CN¥42.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Bloomage BioTechnology's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2024 being well below the historical 27% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 25% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Bloomage BioTechnology.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Bloomage BioTechnology'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 Bloomage BioTechnology going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Bloomage BioTechnology that you should be aware of.

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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.