Makalot Industrial Co., Ltd. Recorded A 6.0% Miss On Revenue: Analysts Are Revisiting Their Models

There's been a notable change in appetite for Makalot Industrial Co., Ltd. (TWSE:1477) shares in the week since its quarterly report, with the stock down 18% to NT$367. Revenues came in 6.0% below expectations, at NT$7.7b. Statutory earnings per share were relatively better off, with a per-share profit of NT$3.55 being roughly in line with 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Makalot Industrial

Taking into account the latest results, the consensus forecast from Makalot Industrial's 14 analysts is for revenues of NT$36.4b in 2024. This reflects a notable 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 6.1% to NT$18.50. In the lead-up to this report, the analysts had been modelling revenues of NT$36.2b and earnings per share (EPS) of NT$18.34 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at NT$467. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Makalot Industrial at NT$578 per share, while the most bearish prices it at NT$360. 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.

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. It's clear from the latest estimates that Makalot Industrial's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.1% p.a. 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 9.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Makalot Industrial to grow faster than the wider industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Makalot Industrial going out to 2026, and you can see them free on our platform here..

Even so, be aware that Makalot Industrial is showing 1 warning sign in our investment analysis , you should know about...

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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.