TravelSky Technology Limited (HKG:696) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

TravelSky Technology Limited (HKG:696) shareholders are probably feeling a little disappointed, since its shares fell 6.0% to HK$9.40 in the week after its latest annual results. Revenues came in 2.3% below expectations, at CN¥8.8b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.80 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from TravelSky Technology's ten analysts is for revenues of CN¥9.32b in 2026. This would reflect a reasonable 6.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 6.8% to CN¥0.85. Before this earnings report, the analysts had been forecasting revenues of CN¥9.59b and earnings per share (EPS) of CN¥0.86 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

Check out our latest analysis for TravelSky Technology

The average price target was steady at HK$12.70even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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 TravelSky Technology at HK$15.71 per share, while the most bearish prices it at HK$10.45. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that TravelSky Technology's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.3% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than TravelSky Technology.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for TravelSky Technology going out to 2028, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for TravelSky Technology you should know about.

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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.