Asia Cement Corporation Just Missed EPS By 32%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Asia Cement Corporation (TWSE:1102) released its quarterly result to the market. The early response was not positive, with shares down 2.8% to NT$46.20 in the past week. It looks like a pretty bad result, all things considered. Although revenues of NT$20b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 32% to hit NT$0.57 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Asia Cement

After the latest results, the six analysts covering Asia Cement are now predicting revenues of NT$82.4b in 2025. If met, this would reflect a meaningful 9.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.6% to NT$3.13. Before this earnings report, the analysts had been forecasting revenues of NT$82.0b and earnings per share (EPS) of NT$3.10 in 2025. 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$40.68, 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 Asia Cement analyst has a price target of NT$46.00 per share, while the most pessimistic values it at NT$30.10. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Asia Cement is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.4% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.9% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.2% per year. So it looks like Asia Cement is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.

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

Even so, be aware that Asia Cement is showing 2 warning signs 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.