It's shaping up to be a tough period for Hangzhou Tigermed Consulting Co., Ltd (SZSE:300347), which a week ago released some disappointing half-yearly results that could have a notable impact on how the market views the stock. Unfortunately, Hangzhou Tigermed Consulting delivered a serious earnings miss. Revenues of CN¥3.4b were 11% below expectations, and statutory earnings per share of CN¥0.30 missed estimates by 40%. 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 Hangzhou Tigermed Consulting after the latest results.

Taking into account the latest results, the current consensus from Hangzhou Tigermed Consulting's 19 analysts is for revenues of CN¥7.66b in 2024. This would reflect a meaningful 9.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 61% to CN¥2.11. In the lead-up to this report, the analysts had been modelling revenues of CN¥8.09b and earnings per share (EPS) of CN¥2.31 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of CN¥71.37, suggesting the downgrades are not expected to have a long-term impact on Hangzhou Tigermed Consulting's 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. There are some variant perceptions on Hangzhou Tigermed Consulting, with the most bullish analyst valuing it at CN¥248 and the most bearish at CN¥33.10 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Hangzhou Tigermed Consulting's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2024 being well below the historical 24% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. So it's pretty clear that, while Hangzhou Tigermed Consulting's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hangzhou Tigermed Consulting. They also downgraded Hangzhou Tigermed Consulting's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at CN¥71.37, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Hangzhou Tigermed Consulting. Long-term earnings power is much more important than next year's profits. We have forecasts for Hangzhou Tigermed Consulting 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 Hangzhou Tigermed Consulting that you should be aware of.

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