The full-year results for Pacific Textiles Holdings Limited (HKG:1382) were released last week, making it a good time to revisit its performance. It was not a great result overall. While revenues of HK$6.1b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 16% to hit HK$0.41 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Pacific Textiles Holdings

Taking into account the latest results, Pacific Textiles Holdings' four analysts currently expect revenues in 2023 to be HK$6.05b, approximately in line with the last 12 months. Per-share earnings are expected to rise 2.3% to HK$0.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of HK$6.09b and earnings per share (EPS) of HK$0.46 in 2023. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at HK$4.59, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Pacific Textiles Holdings at HK$6.00 per share, while the most bearish prices it at HK$2.90. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2023 compared to the historical decline of 1.9% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 15% annually. So while a broad number of companies are forecast to grow, unfortunately Pacific Textiles Holdings is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at HK$4.59, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Pacific Textiles Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Pacific Textiles Holdings going out to 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Pacific Textiles Holdings you should be aware of.

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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.