YUNDA Holding Co., Ltd. Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next

YUNDA Holding Co., Ltd. (SZSE:002120) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. YUNDA Holding missed earnings this time around, with CN¥45b revenue coming in 4.2% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.55 also fell short of expectations by 13%. 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.

See our latest analysis for YUNDA Holding

Taking into account the latest results, the consensus forecast from YUNDA Holding's 14 analysts is for revenues of CN¥49.4b in 2024. This reflects a decent 9.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 40% to CN¥0.79. In the lead-up to this report, the analysts had been modelling revenues of CN¥51.6b and earnings per share (EPS) of CN¥0.82 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.

The analysts made no major changes to their price target of CN¥9.56, suggesting the downgrades are not expected to have a long-term impact on YUNDA Holding's valuation. 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 YUNDA Holding analyst has a price target of CN¥13.30 per share, while the most pessimistic values it at CN¥7.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 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 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. It's clear that while YUNDA Holding's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for YUNDA Holding. 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 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple YUNDA Holding 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 YUNDA Holding 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.