Meitu, Inc. Just Missed Revenue By 11%: Here's What Analysts Think Will Happen Next

Meitu, Inc. (HKG:1357) shareholders are probably feeling a little disappointed, since its shares fell 8.3% to HK$9.84 in the week after its latest interim results. Revenues were CN¥1.8b, 11% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of CN¥0.18 being in line with what the analysts anticipated. 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.

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Taking into account the latest results, the most recent consensus for Meitu from ten analysts is for revenues of CN¥3.94b in 2025. If met, it would imply a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 4.6% to CN¥0.19 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CN¥4.24b and earnings per share (EPS) of CN¥0.18 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

Check out our latest analysis for Meitu

The average price target increased 13% to HK$11.17, with the analysts signalling that the improved earnings outlook is more important to the company's valuation than its revenue. 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. There are some variant perceptions on Meitu, with the most bullish analyst valuing it at HK$14.33 and the most bearish at HK$3.79 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. 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.

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. We can infer from the latest estimates that forecasts expect a continuation of Meitu'shistorical trends, as the 24% annualised revenue growth to the end of 2025 is roughly in line with the 24% 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 8.9% per year. So although Meitu is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Meitu's earnings potential next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. 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.

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. At Simply Wall St, we have a full range of analyst estimates for Meitu going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Meitu that you should be aware of.

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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.