As you might know, Zhejiang Entive Smart Kitchen Appliance Co., Ltd. (SZSE:300911) last week released its latest full-year, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with CN¥1.2b revenue coming in 5.7% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥1.67 missed the mark badly, arriving some 22% below what was expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the nine analysts covering Zhejiang Entive Smart Kitchen Appliance are now predicting revenues of CN¥1.41b in 2024. If met, this would reflect a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 12% to CN¥1.88. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.46b and earnings per share (EPS) of CN¥2.44 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.
The consensus price target fell 6.4% to CN¥36.36, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Zhejiang Entive Smart Kitchen Appliance analyst has a price target of CN¥45.60 per share, while the most pessimistic values it at CN¥30.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zhejiang Entive Smart Kitchen Appliance's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Zhejiang Entive Smart Kitchen Appliance'shistorical trends, as the 15% annualised revenue growth to the end of 2024 is roughly in line with the 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.7% annually. So it's pretty clear that Zhejiang Entive Smart Kitchen Appliance is forecast to grow substantially 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 Zhejiang Entive Smart Kitchen Appliance. They also downgraded Zhejiang Entive Smart Kitchen Appliance's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Zhejiang Entive Smart Kitchen Appliance's future valuation.
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 Zhejiang Entive Smart Kitchen Appliance going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with Zhejiang Entive Smart Kitchen Appliance (including 1 which is a bit concerning) .
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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.