ASE Technology Holding Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that ASE Technology Holding Co., Ltd. (TWSE:3711) filed its quarterly result this time last week. The early response was not positive, with shares down 2.4% to NT$143 in the past week. Revenues of NT$133b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at NT$1.28, missing estimates by 8.8%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for ASE Technology Holding

After the latest results, the 16 analysts covering ASE Technology Holding are now predicting revenues of NT$622.0b in 2024. If met, this would reflect an okay 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 24% to NT$9.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$631.1b and earnings per share (EPS) of NT$9.61 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at NT$149, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 ASE Technology Holding at NT$175 per share, while the most bearish prices it at NT$97.00. 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. We can infer from the latest estimates that forecasts expect a continuation of ASE Technology Holding'shistorical trends, as the 8.8% annualised revenue growth to the end of 2024 is roughly in line with the 10% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 15% annually. So it's pretty clear that ASE Technology Holding is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ASE Technology Holding's revenue is expected to 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for ASE Technology Holding going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with ASE Technology Holding .

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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.