SUNeVision Holdings Ltd. (HKG:1686) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

Shareholders might have noticed that SUNeVision Holdings Ltd. (HKG:1686) filed its half-year result this time last week. The early response was not positive, with shares down 7.9% to HK$2.57 in the past week. It looks like the results were a bit of a negative overall. While revenues of HK$1.3b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.5% to hit HK$0.11 per share. 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.

View our latest analysis for SUNeVision Holdings

After the latest results, the five analysts covering SUNeVision Holdings are now predicting revenues of HK$2.74b in 2024. If met, this would reflect a solid 8.3% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be HK$0.22, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of HK$2.88b and earnings per share (EPS) of HK$0.25 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The consensus price target fell 16% to HK$4.28, with the weaker earnings outlook clearly leading valuation estimates. 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 SUNeVision Holdings, with the most bullish analyst valuing it at HK$6.30 and the most bearish at HK$3.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SUNeVision Holdings' past performance and to peers in the same industry. The analysts are definitely expecting SUNeVision Holdings' growth to accelerate, with the forecast 17% annualised growth to the end of 2024 ranking favourably alongside historical growth of 10% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that SUNeVision Holdings is expected to grow at about the same rate as the wider 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for SUNeVision Holdings going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for SUNeVision Holdings (of which 1 is potentially serious!) 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.