Beijing Capital International Airport Company Limited (HKG:694) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Beijing Capital International Airport Company Limited (HKG:694) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of CN¥5.5b missing analyst predictions by 4.2%. Worse, the business reported a statutory loss of CN¥0.30 per share, much larger than the analysts had forecast prior to the result. Following the result, the analysts have 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

After the latest results, the ten analysts covering Beijing Capital International Airport are now predicting revenues of CN¥6.20b in 2025. If met, this would reflect a decent 13% improvement in revenue compared to the last 12 months. Beijing Capital International Airport is also expected to turn profitable, with statutory earnings of CN¥0.013 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥6.80b and earnings per share (EPS) of CN¥0.066 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

See our latest analysis for Beijing Capital International Airport

The analysts made no major changes to their price target of HK$2.93, suggesting the downgrades are not expected to have a long-term impact on Beijing Capital International Airport's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Beijing Capital International Airport, with the most bullish analyst valuing it at HK$4.02 and the most bearish at HK$2.40 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Beijing Capital International Airport's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 13% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 12% 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 0.2% annually. Not only are Beijing Capital International Airport's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Beijing Capital International Airport. They also downgraded Beijing Capital International Airport's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Beijing Capital International Airport going out to 2027, and you can see them free on our platform here..

Even so, be aware that Beijing Capital International Airport is showing 1 warning sign in our investment analysis , 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.