Chicony Power Technology Co., Ltd. (TWSE:6412) Released Earnings Last Week And Analysts Lifted Their Price Target To NT$162

Shareholders might have noticed that Chicony Power Technology Co., Ltd. (TWSE:6412) filed its third-quarter result this time last week. The early response was not positive, with shares down 3.6% to NT$122 in the past week. Chicony Power Technology beat revenue expectations by 2.1%, at NT$10b. Statutory earnings per share (EPS) came in at NT$2.20, some 3.1% short of analyst estimates. 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 Chicony Power Technology

Taking into account the latest results, the consensus forecast from Chicony Power Technology's three analysts is for revenues of NT$42.9b in 2025. This reflects a solid 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 24% to NT$10.75. In the lead-up to this report, the analysts had been modelling revenues of NT$44.3b and earnings per share (EPS) of NT$11.36 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The average price target climbed 5.7% to NT$162despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. 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. The most optimistic Chicony Power Technology analyst has a price target of NT$175 per share, while the most pessimistic values it at NT$150. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Chicony Power Technology's growth to accelerate, with the forecast 14% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Chicony Power Technology is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Chicony Power Technology. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Chicony Power Technology analysts - going out to 2025, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Chicony Power Technology 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.