Lancy Co., Ltd. (SZSE:002612) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results overall were respectable, with statutory earnings of CN¥0.51 per share roughly in line with what the analysts had forecast. Revenues of CN¥5.1b came in 4.7% ahead of analyst predictions. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

After the latest results, the five analysts covering Lancy are now predicting revenues of CN¥5.84b in 2024. If met, this would reflect a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 38% to CN¥0.70. In the lead-up to this report, the analysts had been modelling revenues of CN¥5.79b and earnings per share (EPS) of CN¥0.68 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target fell 11% to CN¥24.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lancy's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Lancy'shistorical trends, as the 13% annualised revenue growth to the end of 2024 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So although Lancy is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Lancy's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Lancy's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Lancy. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Lancy going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Lancy .

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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.