Livzon Pharmaceutical Group Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Investors in Livzon Pharmaceutical Group Inc. (SZSE:000513) had a good week, as its shares rose 4.7% to close at CN¥39.50 following the release of its first-quarter results. Livzon Pharmaceutical Group missed revenue estimates by 3.4%, coming in atCN¥3.2b, although statutory earnings per share (EPS) of CN¥0.65 beat expectations, coming in 6.6% ahead of analyst estimates. 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 Livzon Pharmaceutical Group

Taking into account the latest results, the most recent consensus for Livzon Pharmaceutical Group from seven analysts is for revenues of CN¥13.3b in 2024. If met, it would imply a solid 8.3% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.0% to CN¥2.32. In the lead-up to this report, the analysts had been modelling revenues of CN¥13.2b and earnings per share (EPS) of CN¥2.32 in 2024. 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.

The analysts reconfirmed their price target of CN¥40.81, showing that the business is executing well and in line with expectations. 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 Livzon Pharmaceutical Group, with the most bullish analyst valuing it at CN¥47.50 and the most bearish at CN¥31.43 per share. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Livzon Pharmaceutical Group's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Livzon Pharmaceutical Group is expected to grow slower than the wider industry.

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. 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.

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 Livzon Pharmaceutical Group analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Livzon Pharmaceutical Group has 1 warning sign we think 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.