Shenzhen Fuanna Bedding and Furnishing Co.,Ltd (SZSE:002327) shareholders are probably feeling a little disappointed, since its shares fell 3.9% to CN¥8.43 in the week after its latest third-quarter results. Revenues were CN¥579m, 18% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of CN¥0.69 being in line with what the analysts forecast. 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 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 Shenzhen Fuanna Bedding and FurnishingLtd from eight analysts is for revenues of CN¥3.26b in 2025. If met, it would imply a solid 8.9% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 15% to CN¥0.71. Before this earnings report, the analysts had been forecasting revenues of CN¥3.33b and earnings per share (EPS) of CN¥0.76 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
It'll come as no surprise then, to learn that the analysts have cut their price target 27% to CN¥8.73. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Shenzhen Fuanna Bedding and FurnishingLtd analyst has a price target of CN¥9.25 per share, while the most pessimistic values it at CN¥8.30. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. The analysts are definitely expecting Shenzhen Fuanna Bedding and FurnishingLtd's growth to accelerate, with the forecast 7.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. So it's clear that despite the acceleration in growth, Shenzhen Fuanna Bedding and FurnishingLtd is expected to grow meaningfully slower than the industry average.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shenzhen Fuanna Bedding and FurnishingLtd. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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. We have forecasts for Shenzhen Fuanna Bedding and FurnishingLtd 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 Shenzhen Fuanna Bedding and FurnishingLtd 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.
