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Anker Innovations Limited Just Beat Revenue By 12%: Here's What Analysts Think Will Happen Next

Simply Wall St ·  Nov 1, 2024 08:07

As you might know, Anker Innovations Limited (SZSE:300866) just kicked off its latest third-quarter results with some very strong numbers. Anker Innovations beat expectations, with revenue hitting CN¥6.8b (12% ahead of estimates) and EPS reaching CN¥1.13 (a 8.7% beat). 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Anker Innovations after the latest results.

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SZSE:300866 Earnings and Revenue Growth November 1st 2024

After the latest results, the nine analysts covering Anker Innovations are now predicting revenues of CN¥27.2b in 2025. If met, this would reflect a major 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 28% to CN¥4.50. Before this earnings report, the analysts had been forecasting revenues of CN¥27.0b and earnings per share (EPS) of CN¥4.49 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥86.60. 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 Anker Innovations, with the most bullish analyst valuing it at CN¥100.00 and the most bearish at CN¥74.00 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.

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. We can infer from the latest estimates that forecasts expect a continuation of Anker Innovations'historical trends, as the 18% annualised revenue growth to the end of 2025 is roughly in line with the 21% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. So although Anker Innovations is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CN¥86.60, 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 Anker Innovations analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Anker Innovations is showing 1 warning sign in our investment analysis , 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.

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