It's been a pretty great week for Tianjin Yiyi Hygiene Products Co.,Ltd (SZSE:001206) shareholders, with its shares surging 17% to CN¥36.59 in the week since its latest quarterly results. Tianjin Yiyi Hygiene ProductsLtd beat revenue forecasts by a solid 18% to hit CN¥379m. Statutory earnings per share came in at CN¥1.35, in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Tianjin Yiyi Hygiene ProductsLtd

Taking into account the latest results, the most recent consensus for Tianjin Yiyi Hygiene ProductsLtd from dual analysts is for revenues of CN¥1.58b in 2022 which, if met, would be a satisfactory 7.3% increase on its sales over the past 12 months. Per-share earnings are expected to swell 17% to CN¥1.48. Before this earnings report, the analysts had been forecasting revenues of CN¥1.55b and earnings per share (EPS) of CN¥1.39 in 2022. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at CN¥36.15, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Tianjin Yiyi Hygiene ProductsLtd'shistorical trends, as the 15% annualised revenue growth to the end of 2022 is roughly in line with the 14% annual revenue growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. So although Tianjin Yiyi Hygiene ProductsLtd 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 Tianjin Yiyi Hygiene ProductsLtd's earnings potential next year. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CN¥36.15, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Tianjin Yiyi Hygiene ProductsLtd (at least 1 which is potentially serious) , and understanding them should be part of your investment process.

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.