EEKA Fashion Holdings Limited (HKG:3709) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. EEKA Fashion Holdings reported in line with analyst predictions, delivering revenues of CN¥6.6b and statutory earnings per share of CN¥0.68, suggesting the business is executing well and in line with its plan. 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 EEKA Fashion Holdings' three analysts is for revenues of CN¥7.25b in 2025. This would reflect a meaningful 10% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 44% to CN¥0.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.25b and earnings per share (EPS) of CN¥0.96 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.
Check out our latest analysis for EEKA Fashion Holdings
The consensus price target fell 7.5% to HK$11.85, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the annual results. 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 EEKA Fashion Holdings analyst has a price target of HK$11.88 per share, while the most pessimistic values it at HK$11.82. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting EEKA Fashion Holdings is an easy business to forecast or the the analysts are all using similar assumptions.
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. The analysts are definitely expecting EEKA Fashion Holdings' growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 16% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, EEKA Fashion Holdings is expected to grow slower 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of EEKA Fashion Holdings' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on EEKA Fashion Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple EEKA Fashion Holdings analysts - 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 2 warning signs for EEKA Fashion Holdings 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.