Earnings Report: Smoore International Holdings Limited Missed Revenue Estimates By 9.4%

It's shaping up to be a tough period for Smoore International Holdings Limited (HKG:6969), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Smoore International Holdings missed analyst forecasts, with revenues of CN¥11b and statutory earnings per share (EPS) of CN¥0.27, falling short by 9.4% and 7.3% respectively. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Smoore International Holdings

Taking into account the latest results, the most recent consensus for Smoore International Holdings from eleven analysts is for revenues of CN¥12.4b in 2024. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.5% to CN¥0.28. Before this earnings report, the analysts had been forecasting revenues of CN¥14.7b and earnings per share (EPS) of CN¥0.35 in 2024. Indeed, we can see that the analysts are a lot more bearish about Smoore International Holdings' prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Despite the cuts to forecast earnings, there was no real change to the HK$9.90 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Smoore International Holdings analyst has a price target of HK$23.67 per share, while the most pessimistic values it at HK$5.40. 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 Smoore International Holdings' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Smoore International Holdings'historical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.0% per year. So although Smoore International Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Smoore International Holdings. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Smoore International Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Smoore International Holdings analysts - going out to 2026, 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. 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.