Global Unichip Corp. (TWSE:3443) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Shareholders might have noticed that Global Unichip Corp. (TWSE:3443) filed its quarterly result this time last week. The early response was not positive, with shares down 7.3% to NT$1,335 in the past week. The result was positive overall - although revenues of NT$6.7b were in line with what the analysts predicted, Global Unichip surprised by delivering a statutory profit of NT$6.78 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Global Unichip after the latest results.

See our latest analysis for Global Unichip

Taking into account the latest results, the consensus forecast from Global Unichip's twelve analysts is for revenues of NT$26.4b in 2024. This reflects a modest 3.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.8% to NT$27.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$28.6b and earnings per share (EPS) of NT$27.35 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of NT$1,693, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Global Unichip's market value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Global Unichip at NT$2,300 per share, while the most bearish prices it at NT$1,120. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Global Unichip's revenue growth is expected to slow, with the forecast 7.1% annualised growth rate until the end of 2024 being well below the historical 21% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 16% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Global Unichip.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at NT$1,693, 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. At Simply Wall St, we have a full range of analyst estimates for Global Unichip going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Global Unichip 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com