King Yuan Electronics Co., Ltd. Just Missed EPS By 43%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for King Yuan Electronics Co., Ltd. (TWSE:2449), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at NT$7.0b, statutory earnings missed forecasts by an incredible 43%, coming in at just NT$2.02 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for King Yuan Electronics

After the latest results, the ten analysts covering King Yuan Electronics are now predicting revenues of NT$35.8b in 2025. If met, this would reflect a decent 9.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 56% to NT$7.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$35.4b and earnings per share (EPS) of NT$7.03 in 2025. So the consensus seems to have become somewhat more optimistic on King Yuan Electronics' earnings potential following these results.

The consensus price target rose 16% to NT$150, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 King Yuan Electronics analyst has a price target of NT$192 per share, while the most pessimistic values it at NT$105. 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.

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. It's clear from the latest estimates that King Yuan Electronics' rate of growth is expected to accelerate meaningfully, with the forecast 7.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 17% annually. So it's clear that despite the acceleration in growth, King Yuan Electronics is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards King Yuan Electronics following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. 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 King Yuan Electronics. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple King Yuan Electronics analysts - going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether King Yuan Electronics' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.