S.F. Holding Co., Ltd. (SZSE:002352) just released its latest annual report and things are not looking great. S.F. Holding missed analyst forecasts, with revenues of CN¥258b and statutory earnings per share (EPS) of CN¥1.70, falling short by 5.8% and 4.1% respectively. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, S.F. Holding's 18 analysts are now forecasting revenues of CN¥286.5b in 2024. This would be a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to CN¥1.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥310.5b and earnings per share (EPS) of CN¥2.17 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
It'll come as no surprise then, to learn that the analysts have cut their price target 12% to CN¥48.96. 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. The most optimistic S.F. Holding analyst has a price target of CN¥74.00 per share, while the most pessimistic values it at CN¥34.10. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. It's pretty clear that there is an expectation that S.F. Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. Compare this to the 29 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. So it's pretty clear that, while S.F. Holding's revenue growth is expected to slow, it's expected to grow roughly in line with 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for S.F. Holding going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for S.F. Holding that you need to take into consideration.
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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.