The analysts might have been a bit too bullish on LB Group Co., Ltd. (SZSE:002601), given that the company fell short of expectations when it released its third-quarter results last week. LB Group missed analyst forecasts, with revenues of CN¥7.1b and statutory earnings per share (EPS) of CN¥0.36, falling short by 10.0% and 3.5% respectively. 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 LB Group from eleven analysts is for revenues of CN¥32.3b in 2025. If met, it would imply a notable 18% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 17% to CN¥1.78. Before this earnings report, the analysts had been forecasting revenues of CN¥32.4b and earnings per share (EPS) of CN¥1.80 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.

There were no changes to revenue or earnings estimates or the price target of CN¥24.07, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values LB Group at CN¥27.03 per share, while the most bearish prices it at CN¥22.00. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that LB Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Compare this to the 491 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it looks like LB Group is forecast to grow at about the same rate as the wider 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 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¥24.07, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple LB Group analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for LB Group that we have uncovered.

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