Investors in Wanda Film Holding Co., Ltd. (SZSE:002739) had a good week, as its shares rose 3.2% to close at CN¥11.83 following the release of its quarterly results. Results overall were respectable, with statutory earnings of CN¥0.42 per share roughly in line with what the analysts had forecast. Revenues of CN¥6.2b came in 4.5% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wanda Film Holding after the latest results.

Taking into account the latest results, the most recent consensus for Wanda Film Holding from eleven analysts is for revenues of CN¥17.1b in 2025. If met, it would imply a major 31% increase on its revenue over the past 12 months. Earnings are expected to improve, with Wanda Film Holding forecast to report a statutory profit of CN¥0.70 per share. Before this earnings report, the analysts had been forecasting revenues of CN¥17.2b and earnings per share (EPS) of CN¥0.87 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 6.6% to CN¥14.62, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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. The most optimistic Wanda Film Holding analyst has a price target of CN¥16.10 per share, while the most pessimistic values it at CN¥12.40. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Wanda Film Holding is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Wanda Film Holding's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.2% 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 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Wanda Film Holding is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Wanda Film Holding. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Wanda Film Holding going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether Wanda Film Holding's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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.