Opple Lighting Co.,LTD (SHSE:603515) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to CN¥17.29 in the week after its latest third-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at CN¥1.7b, statutory earnings beat expectations by a notable 11%, coming in at CN¥0.31 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Opple LightingLTD's seven analysts are now forecasting revenues of CN¥8.07b in 2025. This would be a notable 9.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 12% to CN¥1.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥8.18b and earnings per share (EPS) of CN¥1.35 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥19.93. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Opple LightingLTD, with the most bullish analyst valuing it at CN¥23.40 and the most bearish at CN¥16.60 per share. 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. One thing stands out from these estimates, which is that Opple LightingLTD is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.8% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 15% annually for the foreseeable future. Although Opple LightingLTD's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Opple LightingLTD's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥19.93, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Opple LightingLTD going out to 2026, and you can see them free on our platform here..
Even so, be aware that Opple LightingLTD is showing 1 warning sign in our investment analysis , you should know about...
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
