Nien Made Enterprise Co., LTD. Just Recorded A 19% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a pretty great week for Nien Made Enterprise Co., LTD. (TWSE:8464) shareholders, with its shares surging 13% to NT$442 in the week since its latest second-quarter results. Revenues were NT$7.4b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of NT$6.03 were also better than expected, beating analyst predictions by 19%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nien Made Enterprise after the latest results.

See our latest analysis for Nien Made Enterprise

Following the latest results, Nien Made Enterprise's ten analysts are now forecasting revenues of NT$29.6b in 2024. This would be a modest 6.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.5% to NT$22.33. In the lead-up to this report, the analysts had been modelling revenues of NT$29.5b and earnings per share (EPS) of NT$20.94 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 7.3% to NT$475, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. The most optimistic Nien Made Enterprise analyst has a price target of NT$502 per share, while the most pessimistic values it at NT$416. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nien Made Enterprise's past performance and to peers in the same industry. It's clear from the latest estimates that Nien Made Enterprise's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.9% 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 6.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Nien Made Enterprise is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Nien Made Enterprise's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Nien Made Enterprise 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 Nien Made Enterprise 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.