Last week, you might have seen that Avary Holding(Shenzhen)Co., Limited (SZSE:002938) released its quarterly result to the market. The early response was not positive, with shares down 3.6% to CN¥33.20 in the past week. It looks like a pretty bad result, all things considered. Although revenues of CN¥6.4b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 29% to hit CN¥0.12 per share. 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.

Taking into account the latest results, the consensus forecast from Avary Holding(Shenzhen)Co's seven analysts is for revenues of CN¥37.5b in 2024. This reflects a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 10% to CN¥1.55. Before this earnings report, the analysts had been forecasting revenues of CN¥36.0b and earnings per share (EPS) of CN¥1.66 in 2024. So it's pretty clear consensus is mixed on Avary Holding(Shenzhen)Co after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

The analysts also upgraded Avary Holding(Shenzhen)Co's price target 26% to CN¥33.03, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Avary Holding(Shenzhen)Co, with the most bullish analyst valuing it at CN¥42.60 and the most bearish at CN¥24.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Avary Holding(Shenzhen)Co's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Avary Holding(Shenzhen)Co to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Avary Holding(Shenzhen)Co. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Avary Holding(Shenzhen)Co going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Avary Holding(Shenzhen)Co has 1 warning sign we think you should be aware of.

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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.