Stock Analysis

Anker Innovations Limited Just Missed EPS By 8.8%: Here's What Analysts Think Will Happen Next

SZSE:300866
Source: Shutterstock

Investors in Anker Innovations Limited (SZSE:300866) had a good week, as its shares rose 2.3% to close at CN¥84.78 following the release of its quarterly results. Revenues of CN¥4.4b beat forecasts by 12%, although statutory earnings per share disappointed slightly, coming in 8.8% below expectations at CN¥0.76. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Anker Innovations

earnings-and-revenue-growth
SZSE:300866 Earnings and Revenue Growth April 28th 2024

Taking into account the latest results, the consensus forecast from Anker Innovations' ten analysts is for revenues of CN¥20.5b in 2024. This reflects a meaningful 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 16% to CN¥4.62. In the lead-up to this report, the analysts had been modelling revenues of CN¥20.5b and earnings per share (EPS) of CN¥4.62 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.

The analysts reconfirmed their price target of CN¥106, showing that the business is executing well and in line with expectations. 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 Anker Innovations, with the most bullish analyst valuing it at CN¥124 and the most bearish at CN¥85.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 23% growth on an annualised basis. That is in line with its 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. So it's pretty clear that Anker Innovations is forecast to grow substantially faster than its 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Anker Innovations going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Anker Innovations that we have uncovered.

Valuation is complex, but we're helping make it simple.

Find out whether Anker Innovations is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.