Bearish: Analysts Just Cut Their Nanya Technology Corporation (TWSE:2408) Revenue and EPS estimates

Market forces rained on the parade of Nanya Technology Corporation (TWSE:2408) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the consensus from Nanya Technology's eight analysts is for revenues of NT$32b in 2025, which would reflect a noticeable 6.1% decline in sales compared to the last year of performance. Losses are expected to increase substantially, hitting NT$1.90 per share. Before this latest update, the analysts had been forecasting revenues of NT$47b and earnings per share (EPS) of NT$2.07 in 2025. So we can see that the consensus has become notably more bearish on Nanya Technology's outlook with these numbers, making a sizeable cut to this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

Check out our latest analysis for Nanya Technology

The consensus price target fell 19% to NT$41.30, implicitly signalling that lower earnings per share are a leading indicator for Nanya Technology's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nanya Technology's past performance and to peers in the same industry. We would also point out that the forecast 6.1% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 13% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 18% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Nanya Technology to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts are expecting Nanya Technology to become unprofitable this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Nanya Technology's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Nanya Technology.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Nanya Technology analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.