It's been a good week for Jason Furniture (Hangzhou) Co.,Ltd. (SHSE:603816) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.3% to CN¥33.39. Revenues came in 2.0% below expectations, at CN¥19b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.51 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Jason Furniture (Hangzhou)Ltd's 15 analysts is for revenues of CN¥21.9b in 2024. This would reflect a solid 14% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 15% to CN¥2.81. Before this earnings report, the analysts had been forecasting revenues of CN¥22.3b and earnings per share (EPS) of CN¥2.88 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥45.52, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Jason Furniture (Hangzhou)Ltd analyst has a price target of CN¥55.00 per share, while the most pessimistic values it at CN¥39.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jason Furniture (Hangzhou)Ltd's past performance and to peers in the same industry. The analysts are definitely expecting Jason Furniture (Hangzhou)Ltd's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum 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 9.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jason Furniture (Hangzhou)Ltd to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Jason Furniture (Hangzhou)Ltd going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Jason Furniture (Hangzhou)Ltd you should be aware of, and 1 of them is a bit unpleasant.
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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.