As you might know, East Money Information Co.,Ltd. (SZSE:300059) last week released its latest third-quarter, and things did not turn out so great for shareholders. Earnings came in short of expectations, with revenues of CN¥720m missing the mark by 75%, and statutory earnings per share of CN¥0.12 falling 9.5% short. 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 most recent consensus for East Money InformationLtd from 18 analysts is for revenues of CN¥12.8b in 2025. If met, it would imply a huge 31% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 21% to CN¥0.62. Before this earnings report, the analysts had been forecasting revenues of CN¥12.0b and earnings per share (EPS) of CN¥0.58 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
It will come as no surprise to learn that the analysts have increased their price target for East Money InformationLtd 40% to CN¥21.48on the back of these upgrades. 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. The most optimistic East Money InformationLtd analyst has a price target of CN¥30.45 per share, while the most pessimistic values it at CN¥10.20. 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.
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. The analysts are definitely expecting East Money InformationLtd's growth to accelerate, with the forecast 24% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that East Money InformationLtd is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around East Money InformationLtd's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider 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 East Money InformationLtd going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for East Money InformationLtd that you should be aware of.
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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.
