Earnings Miss: Topsports International Holdings Limited Missed EPS By 7.4% And Analysts Are Revising Their Forecasts

It's been a mediocre week for Topsports International Holdings Limited (HKG:6110) shareholders, with the stock dropping 15% to HK$2.80 in the week since its latest full-year results. Revenues of CN¥27b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥0.21, missing estimates by 7.4%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 2 warning signs about Topsports International Holdings. View them for free.

Taking into account the latest results, the 21 analysts covering Topsports International Holdings provided consensus estimates of CN¥26.1b revenue in 2026, which would reflect a small 3.2% decline over the past 12 months. Statutory per share are forecast to be CN¥0.21, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CN¥27.7b and earnings per share (EPS) of CN¥0.28 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Check out our latest analysis for Topsports International Holdings

The consensus price target fell 5.2% to HK$3.82, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Topsports International Holdings analyst has a price target of HK$6.92 per share, while the most pessimistic values it at HK$2.81. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 5.6% 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 see their revenue grow 19% per year. So while a broad number of companies are forecast to grow, unfortunately Topsports International Holdings is expected to see its revenue affected worse than other companies in 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Topsports International Holdings' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Topsports International Holdings analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Topsports International Holdings that you need to be mindful of.

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

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.