The analyst might have been a bit too bullish on Shanghai Lingang Holdings Co.,Ltd. (SHSE:600848), given that the company fell short of expectations when it released its yearly results last week. Results showed a clear earnings miss, with CN¥7.1b revenue coming in 9.6% lower than what the analystexpected. Statutory earnings per share (EPS) of CN¥0.42 missed the mark badly, arriving some 35% below what was expected. The analyst 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Following the latest results, Shanghai Lingang HoldingsLtd's sole analyst are now forecasting revenues of CN¥9.17b in 2024. This would be a sizeable 30% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 40% to CN¥0.59. In the lead-up to this report, the analyst had been modelling revenues of CN¥8.76b and earnings per share (EPS) of CN¥0.69 in 2024. So it's pretty clear the analyst has mixed opinions on Shanghai Lingang HoldingsLtd after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.

The consensus price target fell 12% to CN¥15.00, suggesting that the analyst are primarily focused on earnings as the driver of value for this business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Shanghai Lingang HoldingsLtd's rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Shanghai Lingang HoldingsLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Shanghai Lingang HoldingsLtd's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Shanghai Lingang HoldingsLtd has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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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.