Analysts Have Been Trimming Their SK-Electronics CO.,LTD. (TSE:6677) Price Target After Its Latest Report

There's been a notable change in appetite for SK-Electronics CO.,LTD. (TSE:6677) shares in the week since its full-year report, with the stock down 19% to JP¥1,956. Revenues came in 4.4% below expectations, at JP¥26b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥221 being roughly in line with analyst estimates. 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.

View our latest analysis for SK-ElectronicsLTD

Taking into account the latest results, the consensus forecast from SK-ElectronicsLTD's dual analysts is for revenues of JP¥28.8b in 2025. This reflects a meaningful 12% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥224, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥30.0b and earnings per share (EPS) of JP¥247 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 6.3% to JP¥3,000.

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. The analysts are definitely expecting SK-ElectronicsLTD's growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.2% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. SK-ElectronicsLTD is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of SK-ElectronicsLTD's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for SK-ElectronicsLTD going out as far as 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for SK-ElectronicsLTD 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.