Shanghai United Imaging Healthcare Co., Ltd. (SHSE:688271) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues fell badly short of expectations, with revenue of CN¥1.6b missing analyst predictions by 32%. Statutory earnings correspondingly nosedived, with Shanghai United Imaging Healthcare reporting a loss of CN¥0.34 per share, where the analysts were expecting a profit. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shanghai United Imaging Healthcare after the latest results.

After the latest results, the 16 analysts covering Shanghai United Imaging Healthcare are now predicting revenues of CN¥15.0b in 2025. If met, this would reflect a major 37% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 70% to CN¥3.29. Before this earnings report, the analysts had been forecasting revenues of CN¥15.6b and earnings per share (EPS) of CN¥3.34 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The consensus has reconfirmed its price target of CN¥132, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Shanghai United Imaging Healthcare's market value. 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 Shanghai United Imaging Healthcare at CN¥152 per share, while the most bearish prices it at CN¥110. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's clear from the latest estimates that Shanghai United Imaging Healthcare's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 20% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Shanghai United Imaging Healthcare is expected to grow much faster than its industry.

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. They also downgraded Shanghai United Imaging Healthcare's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. 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 Shanghai United Imaging Healthcare. Long-term earnings power is much more important than next year's profits. We have forecasts for Shanghai United Imaging Healthcare going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Shanghai United Imaging Healthcare .

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.