Hangzhou Tigermed Consulting Co., Ltd Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Hangzhou Tigermed Consulting Co., Ltd (SZSE:300347) last week released its latest quarterly, and things did not turn out so great for shareholders. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥1.7b) coming in 25% below what they had expected. Statutory earnings per share of CN¥0.27 fell 49% 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Hangzhou Tigermed Consulting

Following the latest results, Hangzhou Tigermed Consulting's 21 analysts are now forecasting revenues of CN¥8.21b in 2024. This would be a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.0% to CN¥2.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥8.46b and earnings per share (EPS) of CN¥2.48 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The analysts made no major changes to their price target of CN¥73.15, suggesting the downgrades are not expected to have a long-term impact on Hangzhou Tigermed Consulting's valuation. 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. The most optimistic Hangzhou Tigermed Consulting analyst has a price target of CN¥248 per share, while the most pessimistic values it at CN¥30.90. 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. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. We would highlight that Hangzhou Tigermed Consulting's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2024 being well below the historical 25% 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 13% annually. Even after the forecast slowdown in growth, it seems obvious that Hangzhou Tigermed Consulting is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hangzhou Tigermed Consulting. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Hangzhou Tigermed Consulting going out to 2026, and you can see them free on our platform here..

We also provide an overview of the Hangzhou Tigermed Consulting Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.