Everest Medicines Limited (HKG:1952) Annual Results: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that Everest Medicines Limited (HKG:1952) released its full-year result to the market. The early response was not positive, with shares down 3.7% to HK$23.50 in the past week. Revenues came in at CN¥126m, an impressive 25% ahead of analyst forecasts. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Everest Medicines

Taking into account the latest results, the consensus forecast from Everest Medicines' six analysts is for revenues of CN¥716.1m in 2024. This reflects a huge 469% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been forecasting revenues of CN¥691.1m and losses of CN¥2.37 per share in 2024. What's really interesting is that while the consensus made a slight bump in revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.

We'd also point out that thatthe analysts have made no major changes to their price target of HK$27.08. 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. The most optimistic Everest Medicines analyst has a price target of HK$39.98 per share, while the most pessimistic values it at HK$23.25. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Everest Medicines' growth to accelerate, with the forecast 5x annualised growth to the end of 2024 ranking favourably alongside historical growth of 92% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 25% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Everest Medicines to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at HK$27.08, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Everest Medicines from its six analysts out to 2026, and you can see them free on our platform here.

Even so, be aware that Everest Medicines is showing 2 warning signs in our investment analysis , you should know about...

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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.