Last week, you might have seen that Livzon Pharmaceutical Group Inc. (SZSE:000513) released its second-quarter result to the market. The early response was not positive, with shares down 5.0% to CN¥35.16 in the past week. Revenues CN¥3.0b disappointed slightly, at5.2% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of CN¥0.62 coming in 13% above what was anticipated. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the seven analysts covering Livzon Pharmaceutical Group are now predicting revenues of CN¥13.0b in 2024. If met, this would reflect a satisfactory 7.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.0% to CN¥2.34. Before this earnings report, the analysts had been forecasting revenues of CN¥13.2b and earnings per share (EPS) of CN¥2.30 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.
There were no changes to revenue or earnings estimates or the price target of CN¥41.39, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Livzon Pharmaceutical Group at CN¥47.50 per share, while the most bearish prices it at CN¥32.91. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Livzon Pharmaceutical Group's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Livzon Pharmaceutical Group to grow faster than 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥41.39, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Livzon Pharmaceutical Group going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Livzon Pharmaceutical Group that you need to take into consideration.
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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.
