NT$190 - That's What Analysts Think ASE Technology Holding Co., Ltd. (TWSE:3711) Is Worth After These Results

It's been a good week for ASE Technology Holding Co., Ltd. (TWSE:3711) shareholders, because the company has just released its latest full-year results, and the shares gained 6.4% to NT$175. It was a credible result overall, with revenues of NT$595b and statutory earnings per share of NT$7.23 both in line with analyst estimates, showing that ASE Technology Holding is executing in line with expectations. 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 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

Taking into account the latest results, the consensus forecast from ASE Technology Holding's 16 analysts is for revenues of NT$667.2b in 2025. This reflects a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 46% to NT$10.90. In the lead-up to this report, the analysts had been modelling revenues of NT$663.5b and earnings per share (EPS) of NT$10.73 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.

The consensus price target rose 6.2% to NT$190despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of ASE Technology Holding's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ASE Technology Holding, with the most bullish analyst valuing it at NT$215 and the most bearish at NT$122 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ASE Technology Holding shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that ASE Technology Holding's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 16% annually. So it's clear that despite the acceleration in growth, ASE Technology Holding is expected to grow meaningfully slower than the industry average.

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. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on ASE Technology Holding. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ASE Technology Holding 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 2 warning signs for ASE Technology Holding 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.