Topsports International Holdings Limited (HKG:6110) Just Reported And Analysts Have Been Cutting Their Estimates

Topsports International Holdings Limited (HKG:6110) just released its latest full-year report and things are not looking great. Topsports International Holdings missed analyst forecasts, with revenues of CN¥29b and statutory earnings per share (EPS) of CN¥0.36, falling short by 2.2% and 4.0% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Topsports International Holdings

After the latest results, the 22 analysts covering Topsports International Holdings are now predicting revenues of CN¥30.7b in 2025. If met, this would reflect a reasonable 6.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 13% to CN¥0.40. In the lead-up to this report, the analysts had been modelling revenues of CN¥32.7b and earnings per share (EPS) of CN¥0.43 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.5% to HK$7.22. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Topsports International Holdings, with the most bullish analyst valuing it at HK$8.28 and the most bearish at HK$5.60 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Topsports International Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.1% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 4.5% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.9% annually for the foreseeable future. Although Topsports International Holdings' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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 in mind, we wouldn't be too quick to come to a conclusion on Topsports International Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Topsports International Holdings going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Topsports International Holdings 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.