Sunac Services Holdings Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for Sunac Services Holdings Limited (HKG:1516) shareholders, because the company has just released its latest annual results, and the shares gained 3.6% to HK$1.72. Revenues fell 5.5% short of expectations, at CN¥7.0b. Earnings correspondingly dipped, with Sunac Services Holdings reporting a statutory loss of CN¥0.15 per share, whereas the analysts had previously modelled a profit in this period. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

After the latest results, the seven analysts covering Sunac Services Holdings are now predicting revenues of CN¥7.23b in 2025. If met, this would reflect a modest 3.7% improvement in revenue compared to the last 12 months. Sunac Services Holdings is also expected to turn profitable, with statutory earnings of CN¥0.24 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.82b and earnings per share (EPS) of CN¥0.27 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

View our latest analysis for Sunac Services Holdings

The analysts made no major changes to their price target of HK$1.75, suggesting the downgrades are not expected to have a long-term impact on Sunac Services Holdings' valuation. 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 Sunac Services Holdings at HK$2.10 per share, while the most bearish prices it at HK$1.20. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's pretty clear that there is an expectation that Sunac Services Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this to the 239 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.3% per year. So it's pretty clear that, while Sunac Services Holdings' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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 estimates - from multiple Sunac Services Holdings analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Sunac Services Holdings is showing 1 warning sign 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.