It's been a good week for Shanghai MicroPort Endovascular MedTech Co., Ltd. (SHSE:688016) shareholders, because the company has just released its latest yearly results, and the shares gained 3.7% to CN¥184. The result was positive overall - although revenues of CN¥1.2b were in line with what the analysts predicted, Shanghai MicroPort Endovascular MedTech surprised by delivering a statutory profit of CN¥6.81 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the ten analysts covering Shanghai MicroPort Endovascular MedTech are now predicting revenues of CN¥1.53b in 2024. If met, this would reflect a major 29% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 30% to CN¥7.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥1.45b and earnings per share (EPS) of CN¥7.47 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of CN¥237, suggesting that the forecast performance does not have a long term impact on the company's 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. The most optimistic Shanghai MicroPort Endovascular MedTech analyst has a price target of CN¥252 per share, while the most pessimistic values it at CN¥230. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 29% growth on an annualised basis. That is in line with its 31% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 20% per year. So although Shanghai MicroPort Endovascular MedTech is expected to maintain its revenue growth rate, it's definitely expected 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 Shanghai MicroPort Endovascular MedTech's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Shanghai MicroPort Endovascular MedTech going out to 2026, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for Shanghai MicroPort Endovascular MedTech 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.