R&G PharmaStudies Co., Ltd. Just Missed Revenue By 5.8%: Here's What Analysts Think Will Happen Next

R&G PharmaStudies Co., Ltd. (SZSE:301333) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues came in 5.8% below expectations, at CN¥744m. Statutory earnings per share were relatively better off, with a per-share profit of CN¥1.47 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from R&G PharmaStudies' twin analysts is for revenues of CN¥977.0m in 2025. This would reflect a major 31% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.5% to CN¥1.59. In the lead-up to this report, the analysts had been modelling revenues of CN¥966.0m and earnings per share (EPS) of CN¥2.16 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

See our latest analysis for R&G PharmaStudies

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 17% to CN¥65.75, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting R&G PharmaStudies' growth to accelerate, with the forecast 31% annualised growth to the end of 2025 ranking favourably alongside historical growth of 10% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that R&G PharmaStudies 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with R&G PharmaStudies .

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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.