Medlive Technology Co., Ltd. (HKG:2192) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 16% higher than the analysts had forecast, at CN¥243m, while EPS were CN¥0.20 beating analyst models by 32%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Medlive Technology's three analysts is for revenues of CN¥532.7m in 2024. This would reflect a notable 11% increase on its revenue over the past 12 months. Statutory earnings per share are expected to shrink 5.2% to CN¥0.38 in the same period. Before this earnings report, the analysts had been forecasting revenues of CN¥516.8m and earnings per share (EPS) of CN¥0.28 in 2024. So it seems there's been a definite increase in optimism about Medlive Technology's future following the latest results, with a very substantial lift in the earnings per share forecasts in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.2% to HK$10.76per share. 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 Medlive Technology at HK$11.20 per share, while the most bearish prices it at HK$10.10. This is a very narrow spread of estimates, implying either that Medlive Technology is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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 2024 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 21% annual growth over the past three years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. It's clear that while Medlive Technology's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Medlive Technology following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Medlive Technology will grow in line with the overall 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 forecasts for Medlive Technology going out to 2026, and you can see them free on our platform here.
You can also see our analysis of Medlive Technology's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.
