Analysts Have Made A Financial Statement On Global Unichip Corp.'s (TWSE:3443) First-Quarter Report

It's been a pretty great week for Global Unichip Corp. (TWSE:3443) shareholders, with its shares surging 14% to NT$1,320 in the week since its latest quarterly results. Results were roughly in line with estimates, with revenues of NT$5.7b and statutory earnings per share of NT$4.94. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Global Unichip

Taking into account the latest results, the current consensus from Global Unichip's 13 analysts is for revenues of NT$28.6b in 2024. This would reflect a decent 12% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 12% to NT$26.97. Before this earnings report, the analysts had been forecasting revenues of NT$28.6b and earnings per share (EPS) of NT$26.02 in 2024. So the consensus seems to have become somewhat more optimistic on Global Unichip's earnings potential following these results.

The consensus price target was unchanged at NT$1,482, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Global Unichip analyst has a price target of NT$1,800 per share, while the most pessimistic values it at NT$1,120. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 21% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. It's clear that while Global Unichip's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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 Global Unichip following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at NT$1,482, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Global Unichip analysts - 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 Global Unichip 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.