Earnings Miss: Silergy Corp. Missed EPS By 69% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that Silergy Corp. (TWSE:6415) filed its first-quarter result this time last week. The early response was not positive, with shares down 9.4% to NT$435 in the past week. It looks like a pretty bad result, all things considered. Although revenues of NT$3.8b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 69% to hit NT$0.20 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Silergy

Taking into account the latest results, the most recent consensus for Silergy from 16 analysts is for revenues of NT$18.9b in 2024. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 90% to NT$6.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$19.0b and earnings per share (EPS) of NT$6.41 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at NT$445, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Silergy, with the most bullish analyst valuing it at NT$543 and the most bearish at NT$200 per share. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Silergy's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 11% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Silergy is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at NT$445, 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 Silergy. 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 Silergy going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Silergy that you need to take into consideration.

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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.