Earnings Miss: Hiwin Technologies Corporation Missed EPS By 10% And Analysts Are Revising Their Forecasts

Hiwin Technologies Corporation (TWSE:2049) shareholders are probably feeling a little disappointed, since its shares fell 6.5% to NT$239 in the week after its latest annual results. Revenues were in line with forecasts, at NT$25b, although statutory earnings per share came in 10% below what the analysts expected, at NT$5.75 per share. Following the result, the analysts have 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Hiwin Technologies

Taking into account the latest results, the most recent consensus for Hiwin Technologies from twelve analysts is for revenues of NT$26.3b in 2024. If met, it would imply an okay 6.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 38% to NT$7.94. In the lead-up to this report, the analysts had been modelling revenues of NT$27.4b and earnings per share (EPS) of NT$9.43 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

What's most unexpected is that the consensus price target rose 5.1% to NT$265, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. 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 Hiwin Technologies, with the most bullish analyst valuing it at NT$342 and the most bearish at NT$165 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Hiwin Technologies' growth to accelerate, with the forecast 6.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.2% per annum 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 13% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Hiwin Technologies is expected to grow slower than the wider industry.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Hiwin Technologies going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Hiwin Technologies (1 is significant!) that you need to take into consideration.

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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.