It's been a good week for Acrobiosystems Co.,Ltd. (SZSE:301080) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.2% to CN¥33.32. Revenues came in 3.3% below expectations, at CN¥146m. Statutory earnings per share were relatively better off, with a per-share profit of CN¥1.28 being roughly in line with analyst estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

After the latest results, the seven analysts covering AcrobiosystemsLtd are now predicting revenues of CN¥638.3m in 2024. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 43% to CN¥1.41. Before this earnings report, the analysts had been forecasting revenues of CN¥642.6m and earnings per share (EPS) of CN¥1.45 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥56.68, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 AcrobiosystemsLtd, with the most bullish analyst valuing it at CN¥80.00 and the most bearish at CN¥44.42 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 18% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 25% per year. So it's pretty clear that AcrobiosystemsLtd is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥56.68, with the latest estimates not enough to have an impact on their price targets.

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 AcrobiosystemsLtd going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for AcrobiosystemsLtd (2 are significant!) that we have uncovered.

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.