Stock Analysis

NT$2,247 - That's What Analysts Think Voltronic Power Technology Corp. (TWSE:6409) Is Worth After These Results

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TWSE:6409

Shareholders might have noticed that Voltronic Power Technology Corp. (TWSE:6409) filed its quarterly result this time last week. The early response was not positive, with shares down 4.8% to NT$1,995 in the past week. Voltronic Power Technology reported in line with analyst predictions, delivering revenues of NT$6.7b and statutory earnings per share of NT$14.01, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Voltronic Power Technology

TWSE:6409 Earnings and Revenue Growth November 11th 2024

Taking into account the latest results, the consensus forecast from Voltronic Power Technology's five analysts is for revenues of NT$26.1b in 2025. This reflects a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 19% to NT$56.20. Before this earnings report, the analysts had been forecasting revenues of NT$26.5b and earnings per share (EPS) of NT$56.36 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.3% to NT$2,247. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Voltronic Power Technology at NT$2,480 per share, while the most bearish prices it at NT$1,750. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Voltronic Power Technology shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Voltronic Power Technology'shistorical trends, as the 13% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 15% per year. It's clear that while Voltronic Power Technology's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Voltronic Power Technology. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Voltronic Power Technology going out to 2026, 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 Voltronic Power Technology 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.