Investors in Haier Smart Home Co., Ltd. (SHSE:600690) had a good week, as its shares rose 6.7% to close at CN¥30.26 following the release of its quarterly results. Haier Smart Home reported CN¥69b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CN¥0.51 beat expectations, being 7.2% higher than what the analysts 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the consensus forecast from Haier Smart Home's 27 analysts is for revenues of CN¥280.9b in 2024. This reflects an okay 5.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.7% to CN¥2.03. Before this earnings report, the analysts had been forecasting revenues of CN¥281.1b and earnings per share (EPS) of CN¥2.00 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.

The consensus price target rose 7.0% to CN¥33.12despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Haier Smart Home's earnings by assigning a price premium. 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 Haier Smart Home, with the most bullish analyst valuing it at CN¥40.70 and the most bearish at CN¥27.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Haier Smart Home shareholders.

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. We can infer from the latest estimates that forecasts expect a continuation of Haier Smart Home'shistorical trends, as the 7.9% annualised revenue growth to the end of 2024 is roughly in line with the 7.0% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.3% per year. It's clear that while Haier Smart Home's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Haier Smart Home going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Haier Smart Home's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.