Alexander Marine Co., Ltd. (TWSE:8478) Just Reported Earnings, And Analysts Cut Their Target Price

It's been a good week for Alexander Marine Co., Ltd. (TWSE:8478) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.7% to NT$308. Results overall were respectable, with statutory earnings of NT$23.64 per share roughly in line with what the analysts had forecast. Revenues of NT$1.7b came in 2.8% ahead of analyst predictions. 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.

See our latest analysis for Alexander Marine

Following last week's earnings report, Alexander Marine's dual analysts are forecasting 2024 revenues to be NT$6.75b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be NT$21.52, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$6.93b and earnings per share (EPS) of NT$22.89 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The consensus price target fell 7.6% to NT$393, with the weaker earnings outlook clearly leading valuation estimates.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.8% by the end of 2024. This indicates a significant reduction from annual growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Alexander Marine is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Alexander Marine. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Alexander Marine going out as far as 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Alexander Marine (1 is potentially serious) you should be aware of.

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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.