Results: Medlive Technology Co., Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a good week for Medlive Technology Co., Ltd. (HKG:2192) shareholders, because the company has just released its latest full-year results, and the shares gained 8.7% to HK$12.46. It looks like a credible result overall - although revenues of CN¥314m were in line with what the analysts predicted, Medlive Technology surprised by delivering a statutory profit of CN¥0.16 per share, a notable 14% above expectations. 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.

Check out our latest analysis for Medlive Technology

Taking into account the latest results, the consensus forecast from Medlive Technology's twin analysts is for revenues of CN¥417.9m in 2023, which would reflect a substantial 33% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to increase 3.9% to CN¥0.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥419.8m and earnings per share (EPS) of CN¥0.17 in 2023. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$13.35.

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. It's clear from the latest estimates that Medlive Technology's rate of growth is expected to accelerate meaningfully, with the forecast 33% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 23% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Medlive Technology to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to 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.

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. We have analyst estimates for Medlive Technology going out as far as 2025, and you can see them free on our platform here.

We also provide an overview of the Medlive Technology Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.