Jerash Holdings (US), Inc. Just Recorded A 7.5% Revenue Beat: Here's What Analysts Think

Shareholders of Jerash Holdings (US), Inc. (NASDAQ:JRSH) will be pleased this week, given that the stock price is up 10% to US$3.30 following its latest quarterly results. It was a workmanlike result, with revenues of US$40m coming in 7.5% ahead of expectations, and statutory earnings per share of US$0.05, in line with analyst appraisals. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Jerash Holdings (US) after the latest results.

View our latest analysis for Jerash Holdings (US)

Following the latest results, Jerash Holdings (US)'s two analysts are now forecasting revenues of US$154.2m in 2025. This would be a notable 18% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 38% to US$0.18. Before this earnings announcement, the analysts had been modelling revenues of US$142.3m and losses of US$0.32 per share in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very promising decrease in loss per share in particular.

Yet despite these upgrades, the analysts cut their price target 5.6% to US$4.25, implicitly signalling that the ongoing losses are likely to weigh negatively on Jerash Holdings (US)'s valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Jerash Holdings (US)'s rate of growth is expected to accelerate meaningfully, with the forecast 40% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jerash Holdings (US) to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Jerash Holdings (US)'s future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Jerash Holdings (US) you should be aware of, and 1 of them makes us a bit uncomfortable.

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.