CN¥216: That's What Analysts Think StarPower Semiconductor Ltd. (SHSE:603290) Is Worth After Its Latest Results

It's been a good week for StarPower Semiconductor Ltd. (SHSE:603290) shareholders, because the company has just released its latest full-year results, and the shares gained 6.1% to CN¥148. It was a credible result overall, with revenues of CN¥3.7b and statutory earnings per share of CN¥5.33 both in line with analyst estimates, showing that StarPower Semiconductor is executing in line with expectations. 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.

Check out our latest analysis for StarPower Semiconductor

Taking into account the latest results, the consensus forecast from StarPower Semiconductor's 17 analysts is for revenues of CN¥4.73b in 2024. This reflects a substantial 29% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 22% to CN¥6.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥4.93b and earnings per share (EPS) of CN¥6.90 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The consensus price target fell 6.7% to CN¥216, with the weaker earnings outlook clearly leading valuation estimates. 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. There are some variant perceptions on StarPower Semiconductor, with the most bullish analyst valuing it at CN¥360 and the most bearish at CN¥150 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that StarPower Semiconductor's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 29% growth on an annualised basis. This is compared to a historical growth rate of 38% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 23% per year. So it's pretty clear that, while StarPower Semiconductor's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for StarPower Semiconductor. They also downgraded StarPower Semiconductor's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for StarPower Semiconductor going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for StarPower Semiconductor (1 is a bit unpleasant!) that 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.