It's been a good week for Chacha Food Company, Limited (SZSE:002557) shareholders, because the company has just released its latest third-quarter results, and the shares gained 9.6% to CN¥33.18. Chacha Food Company reported CN¥1.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CN¥0.56 beat expectations, being 2.2% higher than what the analysts expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the current consensus from Chacha Food Company's 16 analysts is for revenues of CN¥8.35b in 2025. This would reflect a notable 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 21% to CN¥2.24. Before this earnings report, the analysts had been forecasting revenues of CN¥8.37b and earnings per share (EPS) of CN¥2.22 in 2025. 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 consensus price target rose 5.7% to CN¥37.72despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Chacha Food Company's earnings by assigning a price premium. 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. There are some variant perceptions on Chacha Food Company, with the most bullish analyst valuing it at CN¥47.00 and the most bearish at CN¥26.50 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Chacha Food Company's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Chacha Food Company is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Chacha Food Company analysts - going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Chacha Food Company's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.