Aerospace Industrial Development Corporation (TWSE:2634) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

The second-quarter results for Aerospace Industrial Development Corporation (TWSE:2634) were released last week, making it a good time to revisit its performance. Aerospace Industrial Development reported NT$8.8b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of NT$0.61 beat expectations, being 3.4% higher than what the analysts expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Aerospace Industrial Development

After the latest results, the twin analysts covering Aerospace Industrial Development are now predicting revenues of NT$40.0b in 2024. If met, this would reflect a reasonable 2.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 18% to NT$2.89. Before this earnings report, the analysts had been forecasting revenues of NT$41.6b and earnings per share (EPS) of NT$3.11 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the NT$64.00 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Aerospace Industrial Development's revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2024 being well below the historical 10.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Aerospace Industrial Development.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at NT$64.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Aerospace Industrial Development .

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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.