Uni-President Enterprises Corp. Just Recorded A 9.3% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Uni-President Enterprises Corp. (TWSE:1216) had a good week, as its shares rose 5.1% to close at NT$81.10 following the release of its second-quarter results. Uni-President Enterprises reported NT$162b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of NT$1.04 beat expectations, being 9.3% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Uni-President Enterprises

Taking into account the latest results, the current consensus from Uni-President Enterprises' eleven analysts is for revenues of NT$649.3b in 2024. This would reflect a reasonable 2.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 27% to NT$4.15. In the lead-up to this report, the analysts had been modelling revenues of NT$650.2b and earnings per share (EPS) of NT$3.88 in 2024. So the consensus seems to have become somewhat more optimistic on Uni-President Enterprises' earnings potential following these results.

There's been no major changes to the consensus price target of NT$79.69, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Uni-President Enterprises at NT$93.00 per share, while the most bearish prices it at NT$68.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Uni-President Enterprises' revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2024 being well below the historical 7.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Uni-President Enterprises is also expected to grow slower than other industry participants.

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 Uni-President Enterprises following these results. 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$79.69, 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 estimates - from multiple Uni-President Enterprises analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Uni-President Enterprises that you need to take into consideration.

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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.