Hangzhou Hikvision Digital Technology Co., Ltd. Just Missed EPS By 22%: Here's What Analysts Think Will Happen Next

The analysts might have been a bit too bullish on Hangzhou Hikvision Digital Technology Co., Ltd. (SZSE:002415), given that the company fell short of expectations when it released its quarterly results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥18b, statutory earnings missed forecasts by an incredible 22%, coming in at just CN¥0.21 per share. 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 Hikvision Digital Technology

Following the latest results, Hangzhou Hikvision Digital Technology's 19 analysts are now forecasting revenues of CN¥99.7b in 2024. This would be a decent 9.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 18% to CN¥1.80. Before this earnings report, the analysts had been forecasting revenues of CN¥101.5b and earnings per share (EPS) of CN¥1.83 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥42.37. 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 Hikvision Digital Technology analyst has a price target of CN¥51.00 per share, while the most pessimistic values it at CN¥37.84. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Hangzhou Hikvision Digital Technology shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 12% 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 although Hangzhou Hikvision Digital Technology is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hangzhou Hikvision Digital Technology's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥42.37, 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 Hangzhou Hikvision Digital Technology. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hangzhou Hikvision Digital Technology going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Hangzhou Hikvision Digital Technology has 1 warning sign we think you should be aware of.

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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.