Party Time: Brokers Just Made Major Increases To Their Nan Ya Plastics Corporation (TPE:1303) Earnings Forecasts

Shareholders in Nan Ya Plastics Corporation (TPE:1303) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for Nan Ya Plastics from its nine analysts is for revenues of NT$342b in 2021 which, if met, would be a huge 25% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 32% to NT$4.27. Prior to this update, the analysts had been forecasting revenues of NT$310b and earnings per share (EPS) of NT$2.81 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Nan Ya Plastics

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Nan Ya Plastics' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 25% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 0.08% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.8% annually. Not only are Nan Ya Plastics' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Nan Ya Plastics' future.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Nan Ya Plastics going out to 2023, and you can see them free on our platform here..

We also provide an overview of the Nan Ya Plastics Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. 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.
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