Here's What Analysts Are Forecasting For Novatek Microelectronics Corp. (TWSE:3034) After Its Third-Quarter Results

Novatek Microelectronics Corp. (TWSE:3034) shareholders are probably feeling a little disappointed, since its shares fell 2.7% to NT$501 in the week after its latest third-quarter results. Revenues of NT$28b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at NT$8.64, missing estimates by 2.8%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Novatek Microelectronics after the latest results.

View our latest analysis for Novatek Microelectronics

Taking into account the latest results, the most recent consensus for Novatek Microelectronics from 19 analysts is for revenues of NT$114.8b in 2025. If met, it would imply a notable 9.7% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.9% to NT$37.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$115.1b and earnings per share (EPS) of NT$37.55 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at NT$531. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Novatek Microelectronics at NT$666 per share, while the most bearish prices it at NT$400. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We can infer from the latest estimates that forecasts expect a continuation of Novatek Microelectronics'historical trends, as the 7.7% annualised revenue growth to the end of 2025 is roughly in line with the 9.1% 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 Novatek Microelectronics is expected to grow slower than similar companies in the same 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. 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 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Novatek Microelectronics. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Novatek Microelectronics 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 1 warning sign for Novatek Microelectronics 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.