Earnings Miss: Television Broadcasts Limited Missed EPS By 7.1% And Analysts Are Revising Their Forecasts
The analyst might have been a bit too bullish on Television Broadcasts Limited (HKG:511), given that the company fell short of expectations when it released its full-year results last week. Television Broadcasts missed analyst forecasts, with revenues of HK$3.2b and statutory earnings per share (EPS) of HK$0.13, falling short by 5.1% and 7.1% respectively. Following the result, the analyst has 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 statutory forecasts to see whether the analyst has changed their mind on Television Broadcasts after the latest results.
Taking into account the latest results, the most recent consensus for Television Broadcasts from sole analyst is for revenues of HK$3.35b in 2026. If met, it would imply an okay 4.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 226% to HK$0.41. Before this earnings report, the analyst had been forecasting revenues of HK$3.55b and earnings per share (EPS) of HK$0.43 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
See our latest analysis for Television Broadcasts
Despite the cuts to forecast earnings, there was no real change to the HK$4.10 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analyst is definitely expecting Television Broadcasts' growth to accelerate, with the forecast 4.9% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Television Broadcasts is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Television Broadcasts going out as far as 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Television Broadcasts 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.