Analysts' Revenue Estimates For Edvantage Group Holdings Limited (HKG:382) Are Surging Higher

Edvantage Group Holdings Limited (HKG:382) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, Edvantage Group Holdings' nine analysts are now forecasting revenues of CN¥1.2b in 2021. This would be a sizeable 44% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 46% to CN¥0.42. Before this latest update, the analysts had been forecasting revenues of CN¥1.0b and earnings per share (EPS) of CN¥0.39 in 2021. Sentiment certainly seems to have improved in recent times, with a decent improvement in revenue and a modest lift to earnings per share estimates.

Check out our latest analysis for Edvantage Group Holdings

It will come as no surprise to learn that the analysts have increased their price target for Edvantage Group Holdings 17% to CN¥8.10 on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Edvantage Group Holdings at CN¥13.23 per share, while the most bearish prices it at CN¥6.80. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Edvantage Group Holdings' growth to accelerate, with the forecast 44% growth ranking favourably alongside historical growth of 10% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Edvantage Group Holdings is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Edvantage Group Holdings.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Edvantage Group Holdings analysts - going out to 2024, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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