United Microelectronics Corporation (TWSE:2303) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

Shareholders might have noticed that United Microelectronics Corporation (TWSE:2303) filed its third-quarter result this time last week. The early response was not positive, with shares down 3.3% to NT$48.15 in the past week. United Microelectronics reported NT$60b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of NT$1.16 beat expectations, being 4.6% higher than what the analysts expected. 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 United Microelectronics

After the latest results, the 22 analysts covering United Microelectronics are now predicting revenues of NT$258.6b in 2025. If met, this would reflect a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 11% to NT$4.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$265.7b and earnings per share (EPS) of NT$4.72 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of NT$55.43, suggesting the downgrades are not expected to have a long-term impact on United Microelectronics' 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. The most optimistic United Microelectronics analyst has a price target of NT$70.00 per share, while the most pessimistic values it at NT$36.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 9.9% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 17% annually. So it's pretty clear that United Microelectronics is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for United Microelectronics. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for United Microelectronics going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for United Microelectronics 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.