Asia Cement Corporation (TWSE:1102) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

As you might know, Asia Cement Corporation (TWSE:1102) last week released its latest yearly, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 3.0% short of analyst estimates at NT$80b, and statutory earnings of NT$3.28 per share missed forecasts by 3.7%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Asia Cement

Taking into account the latest results, the current consensus, from the six analysts covering Asia Cement, is for revenues of NT$77.3b in 2024. This implies a discernible 3.6% reduction in Asia Cement's revenue over the past 12 months. Per-share earnings are expected to increase 4.1% to NT$3.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$83.3b and earnings per share (EPS) of NT$3.18 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at NT$40.14even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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 Asia Cement at NT$45.00 per share, while the most bearish prices it at NT$32.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Asia Cement shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Asia Cement's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 3.6% annualised decline to the end of 2024. That is a notable change from historical growth of 1.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.2% annually for the foreseeable future. It's pretty clear that Asia Cement's revenues are expected to perform substantially worse than the wider industry.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at NT$40.14, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Asia Cement. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Asia Cement analysts - 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 Asia Cement 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.