As you might know, Hualan Biological Engineering Inc. (SZSE:002007) last week released its latest quarterly, and things did not turn out so great for shareholders. It looks like a clear earnings miss, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥1.8b missed by 19%, and statutory earnings per share of CN¥0.26 fell short of forecasts by 19%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the most recent consensus for Hualan Biological Engineering from 13 analysts is for revenues of CN¥6.56b in 2025. If met, it would imply a huge 33% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 36% to CN¥0.99. Before this earnings report, the analysts had been forecasting revenues of CN¥6.62b and earnings per share (EPS) of CN¥1.00 in 2025. 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.

The analysts reconfirmed their price target of CN¥20.70, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Hualan Biological Engineering analyst has a price target of CN¥27.77 per share, while the most pessimistic values it at CN¥15.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's clear from the latest estimates that Hualan Biological Engineering's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.2% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 26% per year. Hualan Biological Engineering is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CN¥20.70, 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. At Simply Wall St, we have a full range of analyst estimates for Hualan Biological Engineering going out to 2026, and you can see them free on our platform here..

Even so, be aware that Hualan Biological Engineering is showing 1 warning sign in our investment analysis , 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.