Excellence Commercial Property & Facilities Management Group Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analyst might have been a bit too bullish on Excellence Commercial Property & Facilities Management Group Limited (HKG:6989), given that the company fell short of expectations when it released its yearly results last week. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥3.5b missed by 16%, and statutory earnings per share of CN¥0.33 fell short of forecasts by 42%. Following the result, the analyst has 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for Excellence Commercial Property & Facilities Management Group

Taking into account the latest results, the most recent consensus for Excellence Commercial Property & Facilities Management Group from one analyst is for revenues of CN¥4.17b in 2023 which, if met, would be a notable 18% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 42% to CN¥0.47. Yet prior to the latest earnings, the analyst had been anticipated revenues of CN¥5.60b and earnings per share (EPS) of CN¥0.77 in 2023. It looks like sentiment has declined substantially in the aftermath of these results, with a large cut to revenue estimates and a pretty serious reduction to earnings per share numbers as well.

It'll come as no surprise then, to learn that the analyst has cut their price target 17% to HK$3.91.

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. We can infer from the latest estimates that forecasts expect a continuation of Excellence Commercial Property & Facilities Management Group'shistorical trends, as the 18% annualised revenue growth to the end of 2023 is roughly in line with the 22% annual revenue 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 Excellence Commercial Property & Facilities Management Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Excellence Commercial Property & Facilities Management Group. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Excellence Commercial Property & Facilities Management Group 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.