Earnings Update: Rexon Industrial Corp.,Ltd (TPE:1515) Just Reported And Analysts Are Boosting Their Estimates

Investors in Rexon Industrial Corp.,Ltd (TPE:1515) had a good week, as its shares rose 7.5% to close at NT$93.20 following the release of its annual results. Rexon IndustrialLtd reported in line with analyst predictions, delivering revenues of NT$11b and statutory earnings per share of NT$4.47, suggesting the business is executing well and in line with its plan. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

Check out our latest analysis for Rexon IndustrialLtd

Taking into account the latest results, the most recent consensus for Rexon IndustrialLtd from one analyst is for revenues of NT$20.4b in 2021 which, if met, would be a major 80% increase on its sales over the past 12 months. Per-share earnings are expected to jump 103% to NT$9.12. Before this earnings report, the analyst had been forecasting revenues of NT$19.0b and earnings per share (EPS) of NT$8.48 in 2021. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 9.1% to NT$120per share.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Rexon IndustrialLtd's rate of growth is expected to accelerate meaningfully, with the forecast 80% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 23% p.a. 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 20% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Rexon IndustrialLtd to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Rexon IndustrialLtd following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Rexon IndustrialLtd going out as far as 2022, and you can see them free on our platform here.

We also provide an overview of the Rexon IndustrialLtd Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. 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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