Bear Electric Appliance Co.,Ltd. (SZSE:002959) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. Bear Electric ApplianceLtd missed analyst forecasts, with revenues of CN¥4.7b and statutory earnings per share (EPS) of CN¥2.82, falling short by 3.9% and 2.7% 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bear Electric ApplianceLtd after the latest results.

Taking into account the latest results, the consensus forecast from Bear Electric ApplianceLtd's ten analysts is for revenues of CN¥5.16b in 2024. This reflects a decent 9.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 3.3% to CN¥2.97. Before this earnings report, the analysts had been forecasting revenues of CN¥5.23b and earnings per share (EPS) of CN¥3.00 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CN¥68.54, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Bear Electric ApplianceLtd, with the most bullish analyst valuing it at CN¥78.25 and the most bearish at CN¥52.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bear Electric ApplianceLtd's past performance and to peers in the same industry. We would highlight that Bear Electric ApplianceLtd's revenue growth is expected to slow, with the forecast 9.5% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Compare this to the 113 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.9% per year. So it's pretty clear that, while Bear Electric ApplianceLtd'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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

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. We have forecasts for Bear Electric ApplianceLtd 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 Bear Electric ApplianceLtd you should be aware of, and 1 of them is significant.

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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.