Investors in SonoScape Medical Corp. (SZSE:300633) had a good week, as its shares rose 8.9% to close at CN¥35.48 following the release of its third-quarter results. It looks like a pretty bad result, given that revenues fell 17% short of analyst estimates at CN¥380m, and the company reported a statutory loss of CN¥0.14 per share instead of the profit that the analysts had been forecasting. 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.
Taking into account the latest results, the consensus forecast from SonoScape Medical's twelve analysts is for revenues of CN¥2.99b in 2025. This reflects a substantial 46% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 174% to CN¥1.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥3.07b and earnings per share (EPS) of CN¥1.59 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
Despite the cuts to forecast earnings, there was no real change to the CN¥43.87 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on SonoScape Medical, with the most bullish analyst valuing it at CN¥49.40 and the most bearish at CN¥40.93 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that SonoScape Medical's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that SonoScape Medical is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded SonoScape Medical's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at CN¥43.87, 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. At Simply Wall St, we have a full range of analyst estimates for SonoScape Medical going out to 2026, and you can see them free on our platform here..
Even so, be aware that SonoScape Medical is showing 3 warning signs 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.
