Hangzhou Tigermed Consulting Co., Ltd Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Hangzhou Tigermed Consulting Co., Ltd (SZSE:300347) last week released its latest full-year, and things did not turn out so great for shareholders. Hangzhou Tigermed Consulting missed earnings this time around, with CN¥7.4b revenue coming in 5.6% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥2.34 also fell short of expectations by 13%. 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. 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

Taking into account the latest results, the most recent consensus for Hangzhou Tigermed Consulting from 19 analysts is for revenues of CN¥8.45b in 2024. If met, it would imply a decent 14% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.7% to CN¥2.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥9.31b and earnings per share (EPS) of CN¥2.97 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CN¥65.92 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Hangzhou Tigermed Consulting analyst has a price target of CN¥119 per share, while the most pessimistic values it at CN¥30.90. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. 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. It's pretty clear that there is an expectation that Hangzhou Tigermed Consulting's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 27% over the past five years. Compare this to the 24 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 14% per year. Factoring in the forecast slowdown in growth, it looks like Hangzhou Tigermed Consulting is forecast to grow at about the same rate as the wider 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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 in mind, we wouldn't be too quick to come to a conclusion on Hangzhou Tigermed Consulting. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hangzhou Tigermed Consulting analysts - going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Hangzhou Tigermed Consulting's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.