Earnings Miss: Angelalign Technology Inc. Missed EPS By 51% And Analysts Are Revising Their Forecasts

It's been a pretty great week for Angelalign Technology Inc. (HKG:6699) shareholders, with its shares surging 16% to HK$61.40 in the week since its latest half-yearly results. Statutory earnings per share disappointed, coming in -51% short of expectations, at CN¥0.13. Fortunately revenue performance was a lot stronger at CN¥861m arriving 18% ahead of predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Angelalign Technology

Taking into account the latest results, the current consensus from Angelalign Technology's 13 analysts is for revenues of CN¥1.85b in 2024. This would reflect an okay 7.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 70% to CN¥0.44. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.75b and earnings per share (EPS) of CN¥0.43 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of HK$84.70, suggesting the analysts are focused on earnings as the driver of value creation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Angelalign Technology at HK$104 per share, while the most bearish prices it at HK$64.14. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Angelalign Technology shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Angelalign Technology's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 21% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Angelalign Technology is expected to grow slower 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. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse 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 Angelalign Technology. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Angelalign Technology going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Angelalign Technology , and understanding them should be part of your investment process.

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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.