The quarterly results for WuXi AppTec Co., Ltd. (SHSE:603259) were released last week, making it a good time to revisit its performance. It looks like the results were a bit of a negative overall. While revenues of CN¥10b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.0% to hit CN¥0.79 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the consensus forecast from WuXi AppTec's 24 analysts is for revenues of CN¥43.2b in 2025. This reflects a decent 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 31% to CN¥3.67. Before this earnings report, the analysts had been forecasting revenues of CN¥43.3b and earnings per share (EPS) of CN¥3.70 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CN¥62.66, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values WuXi AppTec at CN¥96.12 per share, while the most bearish prices it at CN¥20.50. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the WuXi AppTec's past performance and to peers in the same industry. It's pretty clear that there is an expectation that WuXi AppTec's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.7% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. Factoring in the forecast slowdown in growth, it seems obvious that WuXi AppTec is also expected to grow slower than other industry participants.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that WuXi AppTec's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥62.66, 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 WuXi AppTec. Long-term earnings power is much more important than next year's profits. We have forecasts for WuXi AppTec 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 WuXi AppTec 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.