It's shaping up to be a tough period for The United Laboratories International Holdings Limited (HKG:3933), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 7.3% short of analyst estimates at CN¥14b, and statutory earnings of CN¥1.47 per share missed forecasts by 9.8%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from United Laboratories International Holdings' six analysts is for revenues of CN¥15.1b in 2025. This would reflect a solid 10.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 18% to CN¥1.72. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥15.5b and earnings per share (EPS) of CN¥1.70 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
See our latest analysis for United Laboratories International Holdings
The consensus price target rose 8.0% to HK$13.11, with the analysts apparently satisfied with the business performance despite lower revenue forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values United Laboratories International Holdings at HK$17.00 per share, while the most bearish prices it at HK$11.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of United Laboratories International Holdings'historical trends, as the 10.0% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 8.8% per year. So although United Laboratories International Holdings is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Still, earnings per share are more important to value creation for shareholders. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for United Laboratories International Holdings going out to 2027, and you can see them free on our platform here..
You still need to take note of risks, for example - United Laboratories International Holdings has 1 warning sign we think 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.