It's been a pretty great week for The United Laboratories International Holdings Limited (HKG:3933) shareholders, with its shares surging 12% to HK$10.10 in the week since its latest interim results. It looks like a credible result overall - although revenues of CN¥7.3b were in line with what the analysts predicted, United Laboratories International Holdings surprised by delivering a statutory profit of CN¥0.84 per share, a notable 11% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

After the latest results, the eight analysts covering United Laboratories International Holdings are now predicting revenues of CN¥14.4b in 2024. If met, this would reflect an okay 3.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 2.0% to CN¥1.57 in the same period. Before this earnings report, the analysts had been forecasting revenues of CN¥14.4b and earnings per share (EPS) of CN¥1.57 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$12.72. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values United Laboratories International Holdings at HK$22.00 per share, while the most bearish prices it at HK$9.31. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that United Laboratories International Holdings' revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that United Laboratories International Holdings is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that United Laboratories International Holdings' revenue is expected to perform worse 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.

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. At Simply Wall St, we have a full range of analyst estimates for United Laboratories International Holdings going out to 2026, and you can see them free on our platform here..

Even so, be aware that United Laboratories International Holdings is showing 1 warning sign in our investment analysis , you should know about...

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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.