Walvax Biotechnology Co., Ltd. (SZSE:300142) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

The annual results for Walvax Biotechnology Co., Ltd. (SZSE:300142) were released last week, making it a good time to revisit its performance. Revenues of CN¥4.1b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥0.26, missing estimates by 2.9%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Walvax Biotechnology

Taking into account the latest results, the consensus forecast from Walvax Biotechnology's dual analysts is for revenues of CN¥4.51b in 2024. This reflects a solid 9.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 106% to CN¥0.54. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.07b and earnings per share (EPS) of CN¥0.67 in 2024. Indeed, we can see that the analysts are a lot more bearish about Walvax Biotechnology's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

Despite the cuts to forecast earnings, there was no real change to the CN¥21.00 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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. We would highlight that Walvax Biotechnology's revenue growth is expected to slow, with the forecast 9.7% annualised growth rate until the end of 2024 being well below the historical 33% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 24% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Walvax 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that Walvax Biotechnology is showing 1 warning sign in our investment analysis , you should know about...

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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.