Analysts Just Slashed Their ASMPT Limited (HKG:522) EPS Numbers

The analysts covering ASMPT Limited (HKG:522) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following this downgrade, ASMPT's 22 analysts are forecasting 2024 revenues to be HK$13b, approximately in line with the last 12 months. Per-share earnings are expected to soar 111% to HK$2.06. Before this latest update, the analysts had been forecasting revenues of HK$15b and earnings per share (EPS) of HK$3.15 in 2024. Indeed, we can see that the analysts are a lot more bearish about ASMPT's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for ASMPT

The consensus price target fell 7.2% to HK$113, with the weaker earnings outlook clearly leading analyst valuation estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 0.6% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 0.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% annually for the foreseeable future. It's pretty clear that ASMPT's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for ASMPT. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that ASMPT's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of ASMPT.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple ASMPT analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.

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