Unisplendour Corporation Limited Just Missed Earnings - But Analysts Have Updated Their Models

It's shaping up to be a tough period for Unisplendour Corporation Limited (SZSE:000938), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Unisplendour missed earnings this time around, with CN¥77b revenue coming in 4.0% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.73 also fell short of expectations by 10%. 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.

View our latest analysis for Unisplendour

After the latest results, the twelve analysts covering Unisplendour are now predicting revenues of CN¥85.5b in 2024. If met, this would reflect a meaningful 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 26% to CN¥0.93. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥90.9b and earnings per share (EPS) of CN¥1.00 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CN¥30.95 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Unisplendour, with the most bullish analyst valuing it at CN¥38.10 and the most bearish at CN¥26.47 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 18% annually. So it's pretty clear that Unisplendour is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Unisplendour. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥30.95, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Unisplendour. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Unisplendour analysts - going out to 2026, and you can see them free on our platform here.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.