Livzon Pharmaceutical Group Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Livzon Pharmaceutical Group Inc. (SZSE:000513) released its second-quarter result to the market. The early response was not positive, with shares down 5.0% to CN¥35.16 in the past week. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at CN¥3.0b, statutory earnings beat expectations by a notable 13%, coming in at CN¥0.62 per share. 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 Livzon Pharmaceutical Group

Following the latest results, Livzon Pharmaceutical Group's seven analysts are now forecasting revenues of CN¥13.0b in 2024. This would be an okay 7.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.0% to CN¥2.34. In the lead-up to this report, the analysts had been modelling revenues of CN¥13.2b and earnings per share (EPS) of CN¥2.30 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥41.39. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. 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¥32.91 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Livzon Pharmaceutical Group shareholders.

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. The analysts are definitely expecting Livzon Pharmaceutical Group's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Livzon Pharmaceutical Group is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Livzon Pharmaceutical Group going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Livzon Pharmaceutical Group that you need to be mindful 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.