Shenzhen Capol International & Associatesco.,Ltd (SZSE:002949) just released its latest yearly report and things are not looking great. Results showed a clear earnings miss, with CN¥1.2b revenue coming in 9.6% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.63 missed the mark badly, arriving some 27% below what was expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, Shenzhen Capol International & Associatesco.Ltd's five analysts currently expect revenues in 2025 to be CN¥1.18b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 9.1% to CN¥0.70. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.42b and earnings per share (EPS) of CN¥0.96 in 2025. Indeed, we can see that the analysts are a lot more bearish about Shenzhen Capol International & Associatesco.Ltd's prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

The average price target climbed 6.0% to CN¥17.29despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. 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. Currently, the most bullish analyst values Shenzhen Capol International & Associatesco.Ltd at CN¥18.00 per share, while the most bearish prices it at CN¥16.47. This is a very narrow spread of estimates, implying either that Shenzhen Capol International & Associatesco.Ltd is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shenzhen Capol International & Associatesco.Ltd's past performance and to peers in the same industry. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2025. That would be a definite improvement, given that the past five years have seen revenue shrink 3.7% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 15% per year. So it's pretty clear that, although revenues are improving, Shenzhen Capol International & Associatesco.Ltd is still expected to grow slower than the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shenzhen Capol International & Associatesco.Ltd. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 estimates - from multiple Shenzhen Capol International & Associatesco.Ltd analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Shenzhen Capol International & Associatesco.Ltd that you need to take into consideration.

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.