Nien Made Enterprise Co., LTD. (TWSE:8464) Analysts Are Pretty Bullish On The Stock After Recent Results

Nien Made Enterprise Co., LTD. (TWSE:8464) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to NT$447 in the week after its latest third-quarter results. The result was positive overall - although revenues of NT$7.9b were in line with what the analysts predicted, Nien Made Enterprise surprised by delivering a statutory profit of NT$6.04 per share, modestly greater than 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Nien Made Enterprise

After the latest results, the ten analysts covering Nien Made Enterprise are now predicting revenues of NT$32.5b in 2025. If met, this would reflect a decent 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 13% to NT$24.64. Before this earnings report, the analysts had been forecasting revenues of NT$32.6b and earnings per share (EPS) of NT$24.63 in 2025. 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 consensus price target rose 6.2% to NT$541despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Nien Made Enterprise's earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Nien Made Enterprise at NT$620 per share, while the most bearish prices it at NT$416. 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 Nien Made Enterprise shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Nien Made Enterprise's growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 9.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Nien Made Enterprise is expected to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Nien Made Enterprise going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Nien Made Enterprise 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.