The Consensus EPS Estimates For Luk Fook Holdings (International) Limited (HKG:590) Just Fell Dramatically

Today is shaping up negative for Luk Fook Holdings (International) Limited (HKG:590) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, Luk Fook Holdings (International)'s nine analysts currently expect revenues in 2025 to be HK$15b, approximately in line with the last 12 months. Statutory earnings per share are supposed to decrease 6.0% to HK$2.83 in the same period. Prior to this update, the analysts had been forecasting revenues of HK$17b and earnings per share (EPS) of HK$3.40 in 2025. Indeed, we can see that the analysts are a lot more bearish about Luk Fook Holdings (International)'s prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Luk Fook Holdings (International)

It'll come as no surprise then, to learn that the analysts have cut their price target 14% to HK$23.49.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.03% by the end of 2025. This indicates a significant reduction from annual growth of 1.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.0% annually for the foreseeable future. It's pretty clear that Luk Fook Holdings (International)'s revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Luk Fook Holdings (International).

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Luk Fook Holdings (International) analysts - going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com