Earnings Miss: Yadea Group Holdings Ltd. Missed EPS By 34% And Analysts Are Revising Their Forecasts

Yadea Group Holdings Ltd. (HKG:1585) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with CN¥28b revenue coming in 7.8% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.42 missed the mark badly, arriving some 34% below what was expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

After the latest results, the 15 analysts covering Yadea Group Holdings are now predicting revenues of CN¥37.3b in 2025. If met, this would reflect a major 32% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 125% to CN¥0.94. Before this earnings report, the analysts had been forecasting revenues of CN¥37.7b and earnings per share (EPS) of CN¥0.95 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.

View our latest analysis for Yadea Group Holdings

The consensus price target rose 11% to HK$17.09despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Yadea Group Holdings' earnings by assigning a price premium. 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. Currently, the most bullish analyst values Yadea Group Holdings at HK$22.50 per share, while the most bearish prices it at HK$13.49. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 analysts are definitely expecting Yadea Group Holdings' growth to accelerate, with the forecast 32% annualised growth to the end of 2025 ranking favourably alongside historical growth of 15% 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 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Yadea Group Holdings is expected to grow much 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. Happily, there were no major changes to revenue forecasts, with the business still 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 forecasts for Yadea Group Holdings going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Yadea Group Holdings 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.