Nuvoton Technology Corporation Just Recorded A 102% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that Nuvoton Technology Corporation (TWSE:4919) filed its first-quarter result this time last week. The early response was not positive, with shares down 2.7% to NT$126 in the past week. It looks like a credible result overall - although revenues of NT$8.5b were what the analysts expected, Nuvoton Technology surprised by delivering a (statutory) profit of NT$0.97 per share, an impressive 102% above what was forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Nuvoton Technology

Taking into account the latest results, the most recent consensus for Nuvoton Technology from two analysts is for revenues of NT$36.9b in 2024. If met, it would imply a modest 5.8% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to sink 15% to NT$4.38 in the same period. In the lead-up to this report, the analysts had been modelling revenues of NT$39.8b and earnings per share (EPS) of NT$6.62 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the NT$143 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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 pretty clear that there is an expectation that Nuvoton Technology's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.8% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. Factoring in the forecast slowdown in growth, it seems obvious that Nuvoton Technology is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nuvoton Technology. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at NT$143, 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 analyst estimates for Nuvoton Technology going out as far as 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Nuvoton Technology (1 is concerning!) that you need to be mindful 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.