Eastern Air Logistics Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Eastern Air Logistics Co., Ltd. (SHSE:601156) just kicked off its latest annual results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 5.9% to hit CN¥21b. Statutory earnings per share (EPS) came in at CN¥1.57, some 7.7% above whatthe analysts had expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Eastern Air Logistics

After the latest results, the six analysts covering Eastern Air Logistics are now predicting revenues of CN¥25.1b in 2024. If met, this would reflect a substantial 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 27% to CN¥1.99. In the lead-up to this report, the analysts had been modelling revenues of CN¥23.0b and earnings per share (EPS) of CN¥1.90 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.9% to CN¥22.16per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Eastern Air Logistics, with the most bullish analyst valuing it at CN¥24.00 and the most bearish at CN¥20.79 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 analysts are definitely expecting Eastern Air Logistics' growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 13% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Eastern Air Logistics to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Eastern Air Logistics following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Eastern Air Logistics analysts - 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 Eastern Air Logistics that we have uncovered.

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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.