Results: STO Express Co.,Ltd Beat Earnings Expectations And Analysts Now Have New Forecasts

The quarterly results for STO Express Co.,Ltd (SZSE:002468) were released last week, making it a good time to revisit its performance. Revenues were CN¥12b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at CN¥0.14, an impressive 136% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on STO ExpressLtd after the latest results.

See our latest analysis for STO ExpressLtd

After the latest results, the twelve analysts covering STO ExpressLtd are now predicting revenues of CN¥53.5b in 2025. If met, this would reflect a solid 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 39% to CN¥0.71. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥53.5b and earnings per share (EPS) of CN¥0.71 in 2025. 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 consensus price target rose 7.8% to CN¥12.54despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of STO ExpressLtd's earnings by assigning a price premium. 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 STO ExpressLtd, with the most bullish analyst valuing it at CN¥14.50 and the most bearish at CN¥10.10 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10% per year. So it's pretty clear that STO ExpressLtd is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on STO ExpressLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple STO ExpressLtd analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether STO ExpressLtd is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.