Hisense Home Appliances Group Co., Ltd. (SZSE:000921) shareholders are probably feeling a little disappointed, since its shares fell 4.2% to CN¥28.03 in the week after its latest third-quarter results. It was a credible result overall, with revenues of CN¥22b and statutory earnings per share of CN¥0.57 both in line with analyst estimates, showing that Hisense Home Appliances Group 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Hisense Home Appliances Group's 14 analysts are now forecasting revenues of CN¥103.1b in 2025. This would be a solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 18% to CN¥2.75. Before this earnings report, the analysts had been forecasting revenues of CN¥103.5b and earnings per share (EPS) of CN¥2.76 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥35.90. 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 Hisense Home Appliances Group at CN¥40.00 per share, while the most bearish prices it at CN¥32.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Hisense Home Appliances Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.6% annually. Factoring in the forecast slowdown in growth, it looks like Hisense Home Appliances Group is forecast to grow at about the same rate as the wider 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Hisense Home Appliances Group going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Hisense Home Appliances Group that you should be aware of.

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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.