VisEra Technologies Company Ltd. (TWSE:6789) Analysts Just Cut Their EPS Forecasts Substantially

The latest analyst coverage could presage a bad day for VisEra Technologies Company Ltd. (TWSE:6789), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After this downgrade, VisEra Technologies' two analysts are now forecasting revenues of NT$11b in 2025. This would be a sizeable 20% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 92% to NT$7.36. Previously, the analysts had been modelling revenues of NT$12b and earnings per share (EPS) of NT$8.22 in 2025. Indeed, we can see that the analysts are a lot more bearish about VisEra Technologies' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for VisEra Technologies

The consensus price target fell 11% to NT$328, with the weaker earnings outlook clearly leading analyst valuation estimates.

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 VisEra Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that VisEra Technologies is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for VisEra Technologies. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of VisEra Technologies.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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