Last week, you might have seen that Guangdong Transtek Medical Electronics Co., Ltd (SZSE:300562) released its full-year result to the market. The early response was not positive, with shares down 2.3% to CN¥9.50 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥884m, statutory earnings were in line with expectations, at CN¥0.16 per share. The analyst 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
Taking into account the latest results, the most recent consensus for Guangdong Transtek Medical Electronics from solitary analyst is for revenues of CN¥1.19b in 2024. If met, it would imply a huge 34% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 77% to CN¥0.28. Yet prior to the latest earnings, the analyst had been anticipated revenues of CN¥1.18b and earnings per share (EPS) of CN¥0.26 in 2024. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.
The average the analyst price target fell 53% to CN¥13.70, suggesting thatthe analyst has other concerns, and the improved earnings per share outlook was not enough to allay them.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Guangdong Transtek Medical Electronics' growth to accelerate, with the forecast 34% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Guangdong Transtek Medical Electronics to grow faster than 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 Guangdong Transtek Medical Electronics' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Guangdong Transtek Medical Electronics' future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
You still need to take note of risks, for example - Guangdong Transtek Medical Electronics has 1 warning sign we think 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.