H World Group Limited (NASDAQ:HTHT) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that H World Group Limited (NASDAQ:HTHT) filed its first-quarter result this time last week. The early response was not positive, with shares down 2.4% to US$39.72 in the past week. It was an okay result overall, with revenues coming in at CN¥5.3b, roughly what the analysts had been expecting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for H World Group

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Following the latest results, H World Group's 22 analysts are now forecasting revenues of CN¥24.3b in 2024. This would be a reasonable 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 15% to CN¥13.80. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥24.1b and earnings per share (EPS) of CN¥13.59 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$52.23, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values H World Group at US$63.89 per share, while the most bearish prices it at US$43.92. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that H World Group's revenue growth is expected to slow, with the forecast 9.5% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.8% annually. So it's pretty clear that, while H World Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. 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 in mind, we wouldn't be too quick to come to a conclusion on H World Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for H World Group going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for H World Group that you need to be mindful 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.