Chervon Holdings Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Chervon Holdings Limited (HKG:2285) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Chervon Holdings beat revenue expectations by 2.2%, at US$1.8b. Statutory earnings per share (EPS) came in at US$0.22, some 8.5% short of analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Chervon Holdings' eight analysts are now forecasting revenues of US$1.97b in 2025. This would be a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 23% to US$0.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.97b and earnings per share (EPS) of US$0.30 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Chervon Holdings

The average price target fell 7.4% to HK$26.99, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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 Chervon Holdings analyst has a price target of HK$34.75 per share, while the most pessimistic values it at HK$21.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Chervon Holdings' past performance and to peers in the same industry. The analysts are definitely expecting Chervon Holdings' growth to accelerate, with the forecast 11% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.8% annually. Chervon Holdings is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. At Simply Wall St, we have a full range of analyst estimates for Chervon 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 Chervon 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.