Makalot Industrial Co., Ltd. (TWSE:1477) Just Released Its Annual Earnings: Here's What Analysts Think

It's been a good week for Makalot Industrial Co., Ltd. (TWSE:1477) shareholders, because the company has just released its latest annual results, and the shares gained 9.7% to NT$401. Makalot Industrial reported in line with analyst predictions, delivering revenues of NT$32b and statutory earnings per share of NT$16.50, suggesting the business is executing well and in line with its plan. 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. 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

After the latest results, the twelve analysts covering Makalot Industrial are now predicting revenues of NT$37.5b in 2024. If met, this would reflect a solid 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 15% to NT$19.06. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$36.0b and earnings per share (EPS) of NT$17.94 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of NT$419, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 Makalot Industrial analyst has a price target of NT$525 per share, while the most pessimistic values it at NT$360. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Makalot Industrial's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.9% annually. 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 here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Makalot Industrial following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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 in mind, we wouldn't be too quick to come to a conclusion on Makalot Industrial. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Makalot Industrial analysts - going out to 2025, 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.