President Chain Store Corporation (TWSE:2912) Just Released Its Yearly Earnings: Here's What Analysts Think

Last week, you might have seen that President Chain Store Corporation (TWSE:2912) released its annual result to the market. The early response was not positive, with shares down 2.1% to NT$263 in the past week. It looks like the results were a bit of a negative overall. While revenues of NT$338b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.1% to hit NT$11.07 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for President Chain Store

Taking into account the latest results, the current consensus from President Chain Store's ten analysts is for revenues of NT$359.7b in 2025. This would reflect a modest 6.4% increase on its revenue over the past 12 months. Statutory per share are forecast to be NT$11.15, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$356.8b and earnings per share (EPS) of NT$12.02 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at NT$292, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values President Chain Store at NT$320 per share, while the most bearish prices it at NT$238. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 6.4% growth on an annualised basis. That is in line with its 6.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.1% annually. It's clear that while President Chain Store's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 estimates - from multiple President Chain Store analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that President Chain Store is showing 1 warning sign in our investment analysis , 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.