Tianjin Ringpu Bio-Technology Co.,Ltd. Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Shareholders might have noticed that Tianjin Ringpu Bio-Technology Co.,Ltd. (SZSE:300119) filed its interim result this time last week. The early response was not positive, with shares down 8.8% to CN¥11.85 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥1.1b, statutory earnings were in line with expectations, at CN¥0.98 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Tianjin Ringpu Bio-TechnologyLtd

Following the latest results, Tianjin Ringpu Bio-TechnologyLtd's seven analysts are now forecasting revenues of CN¥2.76b in 2024. This would be a decent 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 15% to CN¥1.08. In the lead-up to this report, the analysts had been modelling revenues of CN¥2.74b and earnings per share (EPS) of CN¥1.13 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The average price target fell 12% to CN¥18.66, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. The most optimistic Tianjin Ringpu Bio-TechnologyLtd analyst has a price target of CN¥21.00 per share, while the most pessimistic values it at CN¥16.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tianjin Ringpu Bio-TechnologyLtd's past performance and to peers in the same industry. It's clear from the latest estimates that Tianjin Ringpu Bio-TechnologyLtd's rate of growth is expected to accelerate meaningfully, with the forecast 38% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 8.9% p.a. 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 Tianjin Ringpu Bio-TechnologyLtd is expected to grow much faster than its industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Tianjin Ringpu Bio-TechnologyLtd. Long-term earnings power is much more important than next year's profits. We have forecasts for Tianjin Ringpu Bio-TechnologyLtd 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 2 warning signs for Tianjin Ringpu Bio-TechnologyLtd 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.