Makalot Industrial Co., Ltd. (TWSE:1477) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Makalot Industrial Co., Ltd. (TWSE:1477) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to NT$387 in the week after its latest quarterly results. Makalot Industrial reported NT$8.6b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of NT$4.63 beat expectations, being 3.7% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Makalot Industrial

Following the latest results, Makalot Industrial's twelve analysts are now forecasting revenues of NT$36.1b in 2024. This would be a solid 8.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.4% to NT$18.32. In the lead-up to this report, the analysts had been modelling revenues of NT$36.2b and earnings per share (EPS) of NT$18.22 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.

The analysts reconfirmed their price target of NT$437, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Makalot Industrial, with the most bullish analyst valuing it at NT$525 and the most bearish at NT$360 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.0% 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 9.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Makalot Industrial is expected to grow much faster than its 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Makalot Industrial going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Makalot Industrial 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.