Feng Tay Enterprises Co., Ltd. (TWSE:9910) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

It's been a good week for Feng Tay Enterprises Co., Ltd. (TWSE:9910) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.0% to NT$141. The result was positive overall - although revenues of NT$22b were in line with what the analysts predicted, Feng Tay Enterprises surprised by delivering a statutory profit of NT$1.60 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Feng Tay Enterprises

Taking into account the latest results, the current consensus from Feng Tay Enterprises' twelve analysts is for revenues of NT$90.9b in 2024. This would reflect a satisfactory 2.7% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 4.2% to NT$6.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$91.0b and earnings per share (EPS) of NT$6.33 in 2024. 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 analysts reconfirmed their price target of NT$158, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Feng Tay Enterprises, with the most bullish analyst valuing it at NT$215 and the most bearish at NT$115 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 5.6% growth on an annualised basis. That is in line with its 5.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.8% per year. So it's pretty clear that Feng Tay Enterprises is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Feng Tay Enterprises' revenue is expected to perform worse than the wider industry. The consensus price target held steady at NT$158, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Feng Tay Enterprises going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Feng Tay Enterprises has 1 warning sign we think 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.