Hanwang Technology Co.,Ltd Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Hanwang Technology Co.,Ltd (SZSE:002362) had a good week, as its shares rose 5.7% to close at CN¥22.16 following the release of its yearly results. It was a pretty negative result overall, with revenues of CN¥1.5b missing analyst predictions by 7.9%. Worse, the business reported a statutory loss of CN¥0.55 per share, a substantial decline on analyst expectations of a profit. Following the result, the analyst has 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Hanwang TechnologyLtd after the latest results.

View our latest analysis for Hanwang TechnologyLtd

Taking into account the latest results, the most recent consensus for Hanwang TechnologyLtd from single analyst is for revenues of CN¥1.78b in 2024. If met, it would imply a major 23% increase on its revenue over the past 12 months. Hanwang TechnologyLtd is also expected to turn profitable, with statutory earnings of CN¥0.32 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of CN¥1.91b and earnings per share (EPS) of CN¥0.45 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

The average price target climbed 21% to CN¥31.26despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

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. The analyst is definitely expecting Hanwang TechnologyLtd's growth to accelerate, with the forecast 23% annualised growth to the end of 2024 ranking favourably alongside historical growth of 10% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Hanwang TechnologyLtd is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hanwang TechnologyLtd. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Hanwang TechnologyLtd , and understanding this should be part of your investment process.

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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.