Optowide Technologies Co., Ltd. Just Missed EPS By 11%: Here's What Analysts Think Will Happen Next

Optowide Technologies Co., Ltd. (SHSE:688195) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥445m, statutory earnings missed forecasts by 11%, coming in at just CN¥0.54 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Optowide Technologies' three analysts is for revenues of CN¥609.0m in 2025. This would reflect a major 37% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 55% to CN¥0.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥656.3m and earnings per share (EPS) of CN¥0.85 in 2025. 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.

View our latest analysis for Optowide Technologies

The consensus has reconfirmed its price target of CN¥40.65, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Optowide Technologies' market value. 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. The most optimistic Optowide Technologies analyst has a price target of CN¥41.30 per share, while the most pessimistic values it at CN¥40.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Optowide Technologies is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting Optowide Technologies' growth to accelerate, with the forecast 37% annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Optowide Technologies to grow faster than the wider 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. 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. At Simply Wall St, we have a full range of analyst estimates for Optowide Technologies going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Optowide Technologies' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.