Rianlon Corporation (SZSE:300596) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Rianlon missed earnings this time around, with CN¥1.4b revenue coming in 7.0% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.41 also fell short of expectations by 11%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rianlon after the latest results.
Taking into account the latest results, the most recent consensus for Rianlon from eight analysts is for revenues of CN¥7.17b in 2025. If met, it would imply a major 26% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 43% to CN¥2.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.22b and earnings per share (EPS) of CN¥2.50 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.
There were no changes to revenue or earnings estimates or the price target of CN¥35.64, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Rianlon analyst has a price target of CN¥44.00 per share, while the most pessimistic values it at CN¥31.70. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Rianlon'shistorical trends, as the 20% annualised revenue growth to the end of 2025 is roughly in line with the 23% 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 16% per year. So although Rianlon is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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. The consensus price target held steady at CN¥35.64, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Rianlon. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Rianlon going out to 2026, and you can see them free on our platform here..
Even so, be aware that Rianlon is showing 1 warning sign 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.
