Earnings Miss: Apeloa Pharmaceutical Co.,Ltd Missed EPS By 9.7% And Analysts Are Revising Their Forecasts

Simply Wall St · 03/13 23:29

Apeloa Pharmaceutical Co.,Ltd (SZSE:000739) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. Apeloa PharmaceuticalLtd missed analyst forecasts, with revenues of CN¥12b and statutory earnings per share (EPS) of CN¥0.89, falling short by 4.9% and 9.7% respectively. 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.

Check out our latest analysis for Apeloa PharmaceuticalLtd

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SZSE:000739 Earnings and Revenue Growth March 13th 2025

Following the latest results, Apeloa PharmaceuticalLtd's eight analysts are now forecasting revenues of CN¥12.7b in 2025. This would be an okay 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 12% to CN¥0.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥14.1b and earnings per share (EPS) of CN¥1.14 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The analysts made no major changes to their price target of CN¥19.43, suggesting the downgrades are not expected to have a long-term impact on Apeloa PharmaceuticalLtd's valuation. 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. Currently, the most bullish analyst values Apeloa PharmaceuticalLtd at CN¥20.20 per share, while the most bearish prices it at CN¥18.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Apeloa PharmaceuticalLtd's revenue growth is expected to slow, with the forecast 5.5% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that Apeloa PharmaceuticalLtd is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Apeloa PharmaceuticalLtd. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at CN¥19.43, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Apeloa PharmaceuticalLtd analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Apeloa PharmaceuticalLtd .