TCL Electronics Holdings Full Year 2023 Earnings: EPS Beats Expectations

TCL Electronics Holdings (HKG:1070) Full Year 2023 Results

Key Financial Results

• Revenue: HK$79.0b (up 11% from FY 2022).
• Net income: HK$743.6m (up 66% from FY 2022).
• Profit margin: 0.9% (up from 0.6% in FY 2022). The increase in margin was driven by higher revenue.
• EPS: HK$0.31 (up from HK$0.18 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

TCL Electronics Holdings EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%.

The primary driver behind last 12 months revenue was the Smart Screen - TCL Smart Screen - International Markets segment contributing a total revenue of HK$33.0b (42% of total revenue). Notably, cost of sales worth HK$64.2b amounted to 81% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to HK$7.90b (54% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of HK$594.6m. Explore how 1070's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Consumer Durables industry in Hong Kong.

Performance of the Hong Kong Consumer Durables industry.

The company's shares are down 1.6% from a week ago.

Valuation

If you are concerned about investing in overvalued stocks, our analysis of 6 valuation measures indicates TCL Electronics Holdings could be one stock to be wary of. Click here to view our comprehensive analysis and gain insights into the stock's investment prospects.

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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.