It's been a good week for Regina Miracle International (Holdings) Limited (HKG:2199) shareholders, because the company has just released its latest full-year results, and the shares gained 4.2% to HK$5.24. It was a workmanlike result, with revenues of HK$8.3b coming in 2.3% ahead of expectations, and statutory earnings per share of HK$0.42, 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Regina Miracle International (Holdings)

Taking into account the latest results, the current consensus from Regina Miracle International (Holdings)'s four analysts is for revenues of HK$9.28b in 2023, which would reflect a notable 11% increase on its sales over the past 12 months. Statutory earnings per share are predicted to bounce 32% to HK$0.56. In the lead-up to this report, the analysts had been modelling revenues of HK$9.19b and earnings per share (EPS) of HK$0.53 in 2023. So the consensus seems to have become somewhat more optimistic on Regina Miracle International (Holdings)'s earnings potential following these results.

The consensus price target fell 5.2% to HK$7.31, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Regina Miracle International (Holdings) analyst has a price target of HK$8.08 per share, while the most pessimistic values it at HK$6.50. This is a very narrow spread of estimates, implying either that Regina Miracle International (Holdings) is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Regina Miracle International (Holdings)'s growth to accelerate, with the forecast 11% annualised growth to the end of 2023 ranking favourably alongside historical growth of 7.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. So it's clear that despite the acceleration in growth, Regina Miracle International (Holdings) is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Regina Miracle International (Holdings) following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Regina Miracle International (Holdings)'s revenues are expected to perform worse 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 Regina Miracle International (Holdings)'s future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Regina Miracle International (Holdings) analysts - going out to 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Regina Miracle International (Holdings) (of which 1 is a bit unpleasant!) 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.