Analysts Have Lowered Expectations For Tianyun International Holdings Limited (HKG:6836) After Its Latest Results

As you might know, Tianyun International Holdings Limited (HKG:6836) recently reported its full-year numbers. Tianyun International Holdings reported CN¥850m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CN¥0.15 beat expectations, being 4.6% higher than what the analysts 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Tianyun International Holdings

Taking into account the latest results, the consensus forecast from Tianyun International Holdings' three analysts is for revenues of CN¥1.17b in 2021, which would reflect a substantial 37% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 34% to CN¥0.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.25b and earnings per share (EPS) of CN¥0.22 in 2021. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The average price target climbed 5.0% to CN¥1.72despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. 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. The most optimistic Tianyun International Holdings analyst has a price target of CN¥2.12 per share, while the most pessimistic values it at CN¥1.99. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Tianyun International Holdings' growth to accelerate, with the forecast 37% annualised growth to the end of 2021 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Tianyun International Holdings is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tianyun International Holdings. They also downgraded their revenue estimates, although industry data suggests that Tianyun International Holdings' revenues are 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. At Simply Wall St, we have a full range of analyst estimates for Tianyun International Holdings going out to 2023, 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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This article by Simply Wall St is general in nature. 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.
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