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Earnings Update: Here's Why Analysts Just Lifted Their YanKer Shop Food Co.,Ltd (SZSE:002847) Price Target To CN¥59.56

Simply Wall St ·  Nov 1, 2024 07:51

Last week, you might have seen that YanKer shop Food Co.,Ltd (SZSE:002847) released its third-quarter result to the market. The early response was not positive, with shares down 9.1% to CN¥50.08 in the past week. YanKer shop FoodLtd reported in line with analyst predictions, delivering revenues of CN¥1.4b and statutory earnings per share of CN¥1.86, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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SZSE:002847 Earnings and Revenue Growth October 31st 2024

Following the latest results, YanKer shop FoodLtd's 13 analysts are now forecasting revenues of CN¥6.38b in 2025. This would be a sizeable 28% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 34% to CN¥2.97. Before this earnings report, the analysts had been forecasting revenues of CN¥6.32b and earnings per share (EPS) of CN¥2.98 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 12% to CN¥59.56. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 YanKer shop FoodLtd, with the most bullish analyst valuing it at CN¥70.80 and the most bearish at CN¥51.00 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 26% 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 11% per year. So although YanKer shop FoodLtd is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

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 YanKer shop FoodLtd analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with YanKer shop FoodLtd .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

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