The Consensus EPS Estimates For KMC (Kuei Meng) International Inc. (TWSE:5306) Just Fell Dramatically

The analysts covering KMC (Kuei Meng) International Inc. (TWSE:5306) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After this downgrade, KMC (Kuei Meng) International's two analysts are now forecasting revenues of NT$5.1b in 2025. This would be a modest 5.7% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to rise 8.9% to NT$7.36. Previously, the analysts had been modelling revenues of NT$6.1b and earnings per share (EPS) of NT$9.78 in 2025. Indeed, we can see that the analysts are a lot more bearish about KMC (Kuei Meng) International's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for KMC (Kuei Meng) International

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that KMC (Kuei Meng) International's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.5% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.9% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.5% annually for the foreseeable future. So although KMC (Kuei Meng) International's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on KMC (Kuei Meng) International, and their negativity could be grounds for caution.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.