Investors in Anker Innovations Limited (SZSE:300866) had a good week, as its shares rose 2.3% to close at CN¥84.78 following the release of its first-quarter results. Revenues of CN¥4.4b beat forecasts by 12%, although statutory earnings per share disappointed slightly, coming in 8.8% below expectations at CN¥0.76. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Anker Innovations' ten analysts is for revenues of CN¥20.5b in 2024. This reflects a solid 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 16% to CN¥4.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥20.5b and earnings per share (EPS) of CN¥4.62 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of CN¥106, showing that the business is executing well and in line with expectations. 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 Anker Innovations, with the most bullish analyst valuing it at CN¥124 and the most bearish at CN¥85.00 per share. 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Anker Innovations'historical trends, as the 23% annualised revenue growth to the end of 2024 is roughly in line with the 20% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So although Anker Innovations is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
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 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¥106, 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 Anker Innovations. Long-term earnings power is much more important than next year's profits. 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..
And what about risks? Every company has them, and we've spotted 1 warning sign for Anker Innovations 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.