It's been a pretty great week for Anker Innovations Limited (SZSE:300866) shareholders, with its shares surging 15% to CN¥63.08 in the week since its latest quarterly results. Revenues of CN¥5.3b beat forecasts by 16%, although statutory earnings per share disappointed slightly, coming in 3.5% below expectations at CN¥0.88. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Anker Innovations from eight analysts is for revenues of CN¥23.5b in 2024. If met, it would imply a decent 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 20% to CN¥3.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥21.3b and earnings per share (EPS) of CN¥3.60 in 2024. Sentiment certainly seems to have improved after the latest results, with a nice gain to revenue and a modest lift to earnings per share estimates.
Despite these upgrades,the analysts have not made any major changes to their price target of CN¥81.01, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Anker Innovations analyst has a price target of CN¥95.00 per share, while the most pessimistic values it at CN¥52.07. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Anker Innovations' growth to accelerate, with the forecast 36% annualised growth to the end of 2024 ranking favourably alongside historical growth of 18% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Anker Innovations to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Anker Innovations following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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. At Simply Wall St, we have a full range of analyst estimates for Anker Innovations going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Anker Innovations .
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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.
