Shareholders might have noticed that Jiangsu King's Luck Brewery Joint-Stock Co.,Ltd. (SHSE:603369) filed its quarterly result this time last week. The early response was not positive, with shares down 5.6% to CN¥42.99 in the past week. It was a credible result overall, with revenues of CN¥2.6b and statutory earnings per share of CN¥0.74 both in line with analyst estimates, showing that Jiangsu King's Luck Brewery Ltd is executing in line with expectations. 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.

Taking into account the latest results, the most recent consensus for Jiangsu King's Luck Brewery Ltd from 13 analysts is for revenues of CN¥12.4b in 2024. If met, it would imply a decent 8.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 7.0% to CN¥3.05. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥12.4b and earnings per share (EPS) of CN¥3.05 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 fell 6.7% to CN¥59.02, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Jiangsu King's Luck Brewery Ltd at CN¥77.00 per share, while the most bearish prices it at CN¥45.40. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We can infer from the latest estimates that forecasts expect a continuation of Jiangsu King's Luck Brewery Ltd'shistorical trends, as the 17% annualised revenue growth to the end of 2024 is roughly in line with the 20% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that Jiangsu King's Luck Brewery Ltd is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Jiangsu King's Luck Brewery Ltd analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Jiangsu King's Luck Brewery Ltd (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.

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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.