Results: Nien Made Enterprise Co., LTD. Beat Earnings Expectations And Analysts Now Have New Forecasts

Last week, you might have seen that Nien Made Enterprise Co., LTD. (TWSE:8464) released its quarterly result to the market. The early response was not positive, with shares down 8.1% to NT$346 in the past week. Revenues NT$6.3b disappointed slightly, at3.9% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of NT$4.87 coming in 13% above what was anticipated. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Nien Made Enterprise

Taking into account the latest results, the most recent consensus for Nien Made Enterprise from seven analysts is for revenues of NT$29.4b in 2024. If met, it would imply a solid 8.3% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.4% to NT$20.82. Before this earnings report, the analysts had been forecasting revenues of NT$29.8b and earnings per share (EPS) of NT$20.15 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of NT$424, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Nien Made Enterprise, with the most bullish analyst valuing it at NT$450 and the most bearish at NT$360 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Nien Made Enterprise's growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.9% annually. 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 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 Nien Made Enterprise following these results. 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. The consensus price target held steady at NT$424, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Nien Made Enterprise going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Nien Made Enterprise .

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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.