Alibaba Health Information Technology Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that Alibaba Health Information Technology Limited (HKG:241) filed its annual result this time last week. The early response was not positive, with shares down 9.9% to HK$4.83 in the past week. It looks like a pretty bad result, all things considered. Although revenues of CN¥31b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 20% to hit CN¥0.089 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 1 warning sign about Alibaba Health Information Technology. View them for free.

After the latest results, the 17 analysts covering Alibaba Health Information Technology are now predicting revenues of CN¥33.6b in 2026. If met, this would reflect a solid 9.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 53% to CN¥0.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥33.7b and earnings per share (EPS) of CN¥0.13 in 2026. So the consensus seems to have become somewhat more optimistic on Alibaba Health Information Technology's earnings potential following these results.

See our latest analysis for Alibaba Health Information Technology

The consensus price target was unchanged at HK$5.13, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Alibaba Health Information Technology, with the most bullish analyst valuing it at HK$9.61 and the most bearish at HK$3.41 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. 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.

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. We would highlight that Alibaba Health Information Technology's revenue growth is expected to slow, with the forecast 9.7% annualised growth rate until the end of 2026 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.8% annually. Factoring in the forecast slowdown in growth, it looks like Alibaba Health Information Technology is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Alibaba Health Information Technology 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. The consensus price target held steady at HK$5.13, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Alibaba Health Information Technology analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Alibaba Health Information Technology that you need to take into consideration.

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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.