Earnings Beat: Global Unichip Corp. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Global Unichip Corp. (TPE:3443) shareholders are probably feeling a little disappointed, since its shares fell 4.5% to NT$395 in the week after its latest full-year results. Revenues were NT$14b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of NT$6.32 were also better than expected, beating analyst predictions by 11%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Global Unichip

Taking into account the latest results, the consensus forecast from Global Unichip's six analysts is for revenues of NT$15.8b in 2021, which would reflect a decent 16% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 54% to NT$9.77. Before this earnings report, the analysts had been forecasting revenues of NT$16.3b and earnings per share (EPS) of NT$9.76 in 2021. 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 analysts have also increased their price target 11% to NT$374, clearly signalling that lower revenue forecasts next year are not expected to have a material impact on Global Unichip'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 Global Unichip at NT$538 per share, while the most bearish prices it at NT$300. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Global Unichip's growth to accelerate, with the forecast 16% growth ranking favourably alongside historical growth of 8.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Global Unichip is expected to grow at about the same rate as 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. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Global Unichip. Long-term earnings power is much more important than next year's profits. We have forecasts for Global Unichip going out to 2023, and you can see them free on our platform here.

You still need to take note of risks, for example - Global Unichip has 1 warning sign we think you should be aware of.

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