Holtek Semiconductor Inc. (TWSE:6202) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

The quarterly results for Holtek Semiconductor Inc. (TWSE:6202) were released last week, making it a good time to revisit its performance. Results look to have been somewhat negative - revenue fell 8.0% short of analyst estimates at NT$444m, although statutory losses were somewhat better. The per-share loss was NT$0.20, 62% smaller than the analysts were expecting prior to the result. 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 Holtek Semiconductor after the latest results.

See our latest analysis for Holtek Semiconductor

Taking into account the latest results, the consensus forecast from Holtek Semiconductor's two analysts is for revenues of NT$2.88b in 2024. This reflects a sizeable 26% improvement in revenue compared to the last 12 months. Earnings are expected to tip over into lossmaking territory, with the analysts forecasting statutory losses of -NT$0.01 per share in 2024. Before this earnings report, the analysts had been forecasting revenues of NT$2.98b and earnings per share (EPS) of NT$0.083 in 2024. There looks to have been a significant drop in sentiment regarding Holtek Semiconductor's prospects after these latest results, with a small dip in revenues and the analysts now forecasting a loss instead of a profit.

There was no major change to the consensus price target of NT$67.00, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Holtek Semiconductor's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 37% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 3.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 15% per year. Not only are Holtek Semiconductor's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting Holtek Semiconductor to become unprofitable next year. They also downgraded Holtek Semiconductor's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at NT$67.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Holtek Semiconductor. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Holtek Semiconductor (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

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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.