Lotus Pharmaceutical Co., Ltd. (TWSE:1795) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Lotus Pharmaceutical Co., Ltd. (TWSE:1795) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to NT$278 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of NT$5.2b and statutory earnings per share of NT$5.98. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Lotus Pharmaceutical

Taking into account the latest results, the current consensus from Lotus Pharmaceutical's five analysts is for revenues of NT$21.4b in 2025. This would reflect a sizeable 22% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 43% to NT$23.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$21.4b and earnings per share (EPS) of NT$23.43 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of NT$399, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Lotus Pharmaceutical, with the most bullish analyst valuing it at NT$600 and the most bearish at NT$330 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Lotus Pharmaceutical's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 62% annually. So it's clear that despite the acceleration in growth, Lotus Pharmaceutical is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lotus Pharmaceutical's revenue is expected to perform worse than the wider industry. The consensus price target held steady at NT$399, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Lotus Pharmaceutical going out to 2026, 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 1 warning sign for Lotus Pharmaceutical 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.