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STO Express Co.,Ltd Just Recorded A 136% EPS Beat: Here's What Analysts Are Forecasting Next

Simply Wall St ·  Nov 2 07:42

The quarterly results for STO Express Co.,Ltd (SZSE:002468) were released last week, making it a good time to revisit its performance. Revenues were CN¥12b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at CN¥0.14, an impressive 136% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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SZSE:002468 Earnings and Revenue Growth November 1st 2024

Taking into account the latest results, the most recent consensus for STO ExpressLtd from twelve analysts is for revenues of CN¥53.5b in 2025. If met, it would imply a meaningful 19% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 39% to CN¥0.71. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥53.5b and earnings per share (EPS) of CN¥0.71 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.

The consensus price target rose 7.8% to CN¥12.54despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of STO ExpressLtd's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on STO ExpressLtd, with the most bullish analyst valuing it at CN¥14.50 and the most bearish at CN¥10.10 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await STO ExpressLtd shareholders.

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 period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 17% 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 10% per year. So it's pretty clear that STO ExpressLtd 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for STO ExpressLtd going out to 2026, and you can see them free on our platform here..

You can also view our analysis of STO ExpressLtd's balance sheet, and whether we think STO ExpressLtd is carrying too much debt, for free on our platform here.

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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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