Giant Biogene Holding Co., Ltd. Just Recorded A 6.9% EPS Beat: Here's What Analysts Are Forecasting Next

Giant Biogene Holding Co., Ltd. (HKG:2367) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 3.0% to hit CN¥3.5b. Statutory earnings per share (EPS) came in at CN¥1.46, some 6.9% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Giant Biogene Holding after the latest results.

Check out our latest analysis for Giant Biogene Holding

Taking into account the latest results, the consensus forecast from Giant Biogene Holding's twelve analysts is for revenues of CN¥4.66b in 2024. This reflects a major 32% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 22% to CN¥1.81. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥4.62b and earnings per share (EPS) of CN¥1.80 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of HK$50.63, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Giant Biogene Holding, with the most bullish analyst valuing it at HK$57.14 and the most bearish at HK$41.96 per share. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 32% growth on an annualised basis. That is in line with its 33% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.8% per year. So it's pretty clear that Giant Biogene Holding is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at HK$50.63, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Giant Biogene Holding 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.