Shine Corporate Ltd (ASX:SHJ) last week reported its latest half-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was an okay result overall, with revenues coming in at AU$89m, roughly what analysts had been expecting. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Shine

Taking into account the latest results, the most recent consensus for Shine from twin analysts is for revenues of AU$187.6m in 2020, which is an okay 3.8% increase on its sales over the past 12 months. Statutory earnings per share are expected to rise 3.0% to AU$0.12. Before this earnings report, analysts had been forecasting revenues of AU$190.2m and earnings per share (EPS) of AU$0.13 in 2020. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at AU$1.18, with analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. We would highlight that Shine's revenue growth is expected to slow, with forecast 3.8% increase next year well below the historical 5.9%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 11% next year. So it's pretty clear that, while revenue growth is expected to slow down, analysts still expect the wider market to grow faster than Shine.

The Bottom Line

The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. The consensus price target held steady at AU$1.18, with the latest estimates not enough to have an impact on analysts' estimated valuations.