Bosideng International Holdings Limited (HKG:3998) just released its latest half-year results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 8.3% to hit CN¥4.5b. Bosideng International Holdings reported earnings per share (EPS) CN¥0.089, which was a notable 15% above what analysts had forecast. Following the result, analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest forecasts to see whether analysts have changed their mind on Bosideng International Holdings after the latest results.

Check out our latest analysis for Bosideng International Holdings

Following the latest results, Bosideng International Holdings's seven analysts are now forecasting revenues of CN¥13.2b in 2020. This would be a decent 16% improvement in sales compared to the last 12 months. Earnings per share are expected to grow 20% to CN¥0.12. Before this earnings report, analysts had been forecasting revenues of CN¥13.2b and earnings per share (EPS) of CN¥0.12 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Analysts reconfirmed their price target of HK$3.80, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Bosideng International Holdings, with the most bullish analyst valuing it at HK$4.83 and the most bearish at HK$2.61 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

In addition, we can look to Bosideng International Holdings's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. Analysts are definitely expecting Bosideng International Holdings's growth to accelerate, with the forecast 16% growth ranking favourably alongside historical growth of 12% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 14% per year. Bosideng International Holdings is expected to grow at about the same rate as its market, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider market. The consensus price target held steady at CN¥3.80, with the latest estimates not enough to have an impact on analysts' estimated valuations.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Bosideng International Holdings analysts - going out to 2022, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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