Guangzhou Haige Communications Group Incorporated Company Just Missed Revenue By 29%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Guangzhou Haige Communications Group Incorporated Company (SZSE:002465) released its second-quarter result to the market. The early response was not positive, with shares down 6.2% to CN¥8.53 in the past week. Revenues were CN¥1.4b, 29% shy of what the analysts were expecting, although statutory earnings of CN¥0.30 per share were roughly in line with what was forecast. 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 Guangzhou Haige Communications Group

After the latest results, the seven analysts covering Guangzhou Haige Communications Group are now predicting revenues of CN¥7.09b in 2024. If met, this would reflect a decent 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 34% to CN¥0.32. In the lead-up to this report, the analysts had been modelling revenues of CN¥7.68b and earnings per share (EPS) of CN¥0.35 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.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.0% to CN¥13.21. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Guangzhou Haige Communications Group at CN¥13.42 per share, while the most bearish prices it at CN¥13.00. This is a very narrow spread of estimates, implying either that Guangzhou Haige Communications Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Guangzhou Haige Communications Group's past performance and to peers in the same industry. The analysts are definitely expecting Guangzhou Haige Communications Group's growth to accelerate, with the forecast 32% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Guangzhou Haige Communications Group to grow faster than 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Guangzhou Haige Communications Group's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Guangzhou Haige Communications Group going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Guangzhou Haige Communications Group that 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.