SinoPac Financial Holdings Company Limited Just Recorded A 19% Revenue Beat: Here's What Analysts Think

SinoPac Financial Holdings Company Limited (TWSE:2890) shareholders are probably feeling a little disappointed, since its shares fell 6.8% to NT$24.50 in the week after its latest second-quarter results. It was a mildly positive result, with revenues exceeding expectations at NT$16b, while statutory earnings per share (EPS) of NT$0.42 were in line with analyst forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 SinoPac Financial Holdings

Taking into account the latest results, the most recent consensus for SinoPac Financial Holdings from three analysts is for revenues of NT$60.7b in 2024. If met, it would imply a satisfactory 5.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 7.0% to NT$1.84. In the lead-up to this report, the analysts had been modelling revenues of NT$58.8b and earnings per share (EPS) of NT$1.78 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to NT$25.52per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on SinoPac Financial Holdings, with the most bullish analyst valuing it at NT$27.00 and the most bearish at NT$23.90 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 3.7% annually. So it's clear that not only is revenue growth expected to be maintained, but SinoPac Financial Holdings is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SinoPac Financial Holdings' earnings potential next year. Fortunately, they also upgraded their revenue estimates, and our data indicates it is expected to perform better than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on SinoPac Financial Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for SinoPac Financial Holdings going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for SinoPac Financial Holdings (1 is a bit concerning!) that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.