Dian Diagnostics Group Co.,Ltd. (SZSE:300244) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. Unfortunately, Dian Diagnostics GroupLtd delivered a serious earnings miss. Revenues of CN¥3.2b were 11% below expectations, and statutory earnings per share of CN¥0.08 missed estimates by 72%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

After the latest results, the eleven analysts covering Dian Diagnostics GroupLtd are now predicting revenues of CN¥14.2b in 2024. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Dian Diagnostics GroupLtd forecast to report a statutory profit of CN¥1.03 per share. In the lead-up to this report, the analysts had been modelling revenues of CN¥14.2b and earnings per share (EPS) of CN¥1.02 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 CN¥15.37. 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 Dian Diagnostics GroupLtd, with the most bullish analyst valuing it at CN¥20.00 and the most bearish at CN¥10.00 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.

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. The analysts are definitely expecting Dian Diagnostics GroupLtd's growth to accelerate, with the forecast 24% annualised growth to the end of 2024 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dian Diagnostics GroupLtd to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at CN¥15.37, with the latest estimates not enough to have an impact on their price targets.

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. We have estimates - from multiple Dian Diagnostics GroupLtd analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of Dian Diagnostics GroupLtd's balance sheet, and whether we think Dian Diagnostics GroupLtd is carrying too much debt, for free on our platform here.

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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.