Makalot Industrial Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Makalot Industrial Co., Ltd. (TWSE:1477) filed its third-quarter result this time last week. The early response was not positive, with shares down 4.4% to NT$329 in the past week. Revenues were in line with forecasts, at NT$10b, although statutory earnings per share came in 10% below what the analysts expected, at NT$4.74 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Makalot Industrial

Following the latest results, Makalot Industrial's 14 analysts are now forecasting revenues of NT$40.1b in 2025. This would be a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 19% to NT$19.53. Before this earnings report, the analysts had been forecasting revenues of NT$40.3b and earnings per share (EPS) of NT$20.24 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target fell 6.2% to NT$421, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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 Makalot Industrial, with the most bullish analyst valuing it at NT$567 and the most bearish at NT$339 per share. 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 Makalot Industrial shareholders.

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. It's clear from the latest estimates that Makalot Industrial's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Makalot Industrial 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Makalot Industrial. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Makalot Industrial's future valuation.

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. We have estimates - from multiple Makalot Industrial analysts - 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 1 warning sign for Makalot Industrial 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.