Earnings Miss: Uni-President Enterprises Corp. Missed EPS By 14% And Analysts Are Revising Their Forecasts

The yearly results for Uni-President Enterprises Corp. (TWSE:1216) were released last week, making it a good time to revisit its performance. It was not a great result overall. While revenues of NT$581b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 14% to hit NT$3.23 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Uni-President Enterprises

Taking into account the latest results, the consensus forecast from Uni-President Enterprises' nine analysts is for revenues of NT$618.9b in 2024. This reflects a reasonable 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 22% to NT$3.93. In the lead-up to this report, the analysts had been modelling revenues of NT$613.6b and earnings per share (EPS) of NT$4.00 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of NT$74.70, showing that the business is executing well and in line with expectations. 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. The most optimistic Uni-President Enterprises analyst has a price target of NT$84.00 per share, while the most pessimistic values it at NT$68.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Uni-President Enterprises is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Uni-President Enterprises'historical trends, as the 6.5% annualised revenue growth to the end of 2024 is roughly in line with the 5.6% 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 8.8% per year. So although Uni-President Enterprises is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at NT$74.70, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Uni-President Enterprises going out to 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 2 warning signs for Uni-President Enterprises that 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.