MicroPort CardioFlow Medtech Corporation (HKG:2160) Consensus forecast has gotten a little gloomier since its last report
As you may know, MicroPort CardioFlow Medtech Corporation (HKG:2160) released its last full year last week, and things haven’t gone so well for shareholders. Unfortunately, MicroPort CardioFlow Medtech suffered a serious shortfall. Revenue of 201 million Canadian yen was 19% lower than expected and statutory losses jumped 36% to 0.08 million Canadian yen per share. Earnings are an important time for investors because they can follow a company’s performance, watch what analysts predict for the next year, and see if there has been a change in sentiment towards the company. We thought readers would find it interesting to see analysts’ latest post-earnings (statutory) forecasts for next year.
Check out our latest analysis for MicroPort CardioFlow Medtech
Following the latest results, the five analysts covering MicroPort CardioFlow Medtech now forecast revenue of 369.0 million Canadian yen in 2022. If achieved, it would reflect a significant 84% improvement in sales over the past 12 months. The loss per share is expected to decline sharply in the near future, narrowing by 50% to ¥0.038 CN. Still, ahead of the latest results, analysts were forecasting revenue of 501.4 million Canadian yen and losses of 0.038 domestic yen per share in 2022. So there has certainly been a shift in sentiment in this update, analysts administering a substantial haircut to next year’s revenue estimates, while keeping per-share losses stable.
Analysts raised their price target by 18% to HK$13.10 per share, with earnings estimates cut that are unlikely to have a long-term impact on the company’s intrinsic value. There is, however, another way to think about price targets, and that is to look at the range of price targets offered by analysts, as a wide range of estimates could suggest a diverse view of possible outcomes for the market. business. Currently, the most bullish analyst values MicroPort CardioFlow Medtech at HK$21.83 per share, while the most bearish values it at HK$6.48. So we wouldn’t give analysts’ price targets too much credence in this case, as there are clearly very different views on what kind of performance this activity can generate. With that in mind, we wouldn’t place too much reliance on the consensus price target, as it’s just an average and analysts clearly have deeply differing views on the company.
One way to get more context on these forecasts is to examine how they compare both to past performance and to the performance of other companies in the same industry. It is clear from the latest estimates that MicroPort CardioFlow Medtech’s growth rate is set to accelerate significantly, with an annualized revenue growth forecast of 84% through the end of 2022 significantly faster than its historic growth of 68%. % per year over the last three years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to grow revenue by 38% annually. Taking into account the expected revenue acceleration, it’s pretty clear that MicroPort CardioFlow Medtech should grow much faster than its industry.
The most important thing to remember is that analysts have reconfirmed their loss per share estimates for next year. They also lowered their revenue estimates, although industry data suggests MicroPort CardioFlow Medtech’s revenue is expected to grow faster than the overall industry. We note an upgrade to the price target, which suggests that analysts believe the company’s intrinsic value is likely to improve over time.
With that in mind, we wouldn’t be too quick to come to a conclusion on MicroPort CardioFlow Medtech. Long-term earnings power is much more important than next year’s earnings. At Simply Wall St, we have a full range of analyst estimates for MicroPort CardioFlow Medtech through 2024, and you can view them for free on our platform here.
And what about the risks? Every business has them, and we’ve spotted 2 Warning Signs for MicroPort CardioFlow Medtech you should know.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.