It's been a good week for Chaoju Eye Care Holdings Limited (HKG:2219) shareholders, because the company has just released its latest full-year results, and the shares gained 4.8% to HK$3.93. It was a pretty mixed result, with revenues beating expectations to hit CN¥1.4b. Statutory earnings fell 8.3% short of analyst forecasts, reaching CN¥0.33 per share. The analysts 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Chaoju Eye Care Holdings after the latest results.
After the latest results, the twin analysts covering Chaoju Eye Care Holdings are now predicting revenues of CN¥1.64b in 2024. If met, this would reflect a meaningful 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 15% to CN¥0.39. Before this earnings report, the analysts had been forecasting revenues of CN¥1.57b and earnings per share (EPS) of CN¥0.45 in 2024. So it's pretty clear the analysts have mixed opinions on Chaoju Eye Care Holdings after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.
The consensus price target was unchanged at HK$7.19, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Chaoju Eye Care Holdings' growth to accelerate, with the forecast 20% annualised growth to the end of 2024 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Chaoju Eye Care Holdings is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Chaoju Eye Care Holdings. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at HK$7.19, 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 2026, which can be seen for free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Chaoju Eye Care 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.