Suofeiya Home Collection Co., Ltd. (SZSE:002572) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Unfortunately, Suofeiya Home Collection delivered a serious earnings miss. Revenues of CN¥2.7b were 16% below expectations, and statutory earnings per share of CN¥0.37 missed estimates by 23%. 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.

Following the latest results, Suofeiya Home Collection's 20 analysts are now forecasting revenues of CN¥12.7b in 2025. This would be a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 22% to CN¥1.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥12.9b and earnings per share (EPS) of CN¥1.57 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 6.4% to CN¥17.48despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Suofeiya Home Collection's earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Suofeiya Home Collection, with the most bullish analyst valuing it at CN¥25.74 and the most bearish at CN¥12.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.6% annually. So it's pretty clear that Suofeiya Home Collection is forecast to grow substantially faster than its 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. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Suofeiya Home Collection analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Suofeiya Home Collection , and understanding these should be part of your investment process.

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