Shenzhen New Industries Biomedical Engineering Co., Ltd. (SZSE:300832) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Shenzhen New Industries Biomedical Engineering missed earnings this time around, with CN¥1.2b revenue coming in 6.6% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.61 also fell short of expectations by 13%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Following the latest results, Shenzhen New Industries Biomedical Engineering's 14 analysts are now forecasting revenues of CN¥5.98b in 2025. This would be a substantial 35% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 36% to CN¥3.21. In the lead-up to this report, the analysts had been modelling revenues of CN¥6.11b and earnings per share (EPS) of CN¥3.28 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of CN¥85.79, suggesting the downgrades are not expected to have a long-term impact on Shenzhen New Industries Biomedical Engineering's valuation. 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. Currently, the most bullish analyst values Shenzhen New Industries Biomedical Engineering at CN¥95.79 per share, while the most bearish prices it at CN¥79.22. This is a very narrow spread of estimates, implying either that Shenzhen New Industries Biomedical Engineering is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 analysts are definitely expecting Shenzhen New Industries Biomedical Engineering's growth to accelerate, with the forecast 27% annualised growth to the end of 2025 ranking favourably alongside historical growth of 20% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shenzhen New Industries Biomedical Engineering to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shenzhen New Industries Biomedical Engineering. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Shenzhen New Industries Biomedical Engineering. Long-term earnings power is much more important than next year's profits. We have forecasts for Shenzhen New Industries Biomedical Engineering going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Shenzhen New Industries Biomedical Engineering has 1 warning sign we think you should be aware of.

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.