The Consensus EPS Estimates For Regina Miracle International (Holdings) Limited (HKG:2199) Just Fell Dramatically

The latest analyst coverage could presage a bad day for Regina Miracle International (Holdings) Limited (HKG:2199), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the two analysts covering Regina Miracle International (Holdings) provided consensus estimates of HK$7.5b revenue in 2024, which would reflect a measurable 5.1% decline on its sales over the past 12 months. Statutory earnings per share are supposed to descend 12% to HK$0.28 in the same period. Prior to this update, the analysts had been forecasting revenues of HK$9.0b and earnings per share (EPS) of HK$0.46 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for Regina Miracle International (Holdings)

The consensus price target fell 14% to HK$4.01, with the weaker earnings outlook clearly leading analyst valuation estimates. 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 Regina Miracle International (Holdings), with the most bullish analyst valuing it at HK$4.70 and the most bearish at HK$3.44 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Regina Miracle International (Holdings) shareholders.

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. We would highlight that sales are expected to reverse, with a forecast 5.1% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 8.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that Regina Miracle International (Holdings)'s revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Regina Miracle International (Holdings). Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Regina Miracle International (Holdings).

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Regina Miracle International (Holdings) going out as far as 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.