Global Mixed-Mode Technology Inc. Just Missed Earnings - But Analysts Have Updated Their Models

The analysts might have been a bit too bullish on Global Mixed-Mode Technology Inc. (TWSE:8081), given that the company fell short of expectations when it released its second-quarter results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at NT$2.1b, statutory earnings missed forecasts by 11%, coming in at just NT$4.28 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Global Mixed-Mode Technology

Taking into account the latest results, Global Mixed-Mode Technology's three analysts currently expect revenues in 2024 to be NT$8.12b, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 6.7% to NT$16.94 in the same period. Before this earnings report, the analysts had been forecasting revenues of NT$8.57b and earnings per share (EPS) of NT$18.88 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 7.4% to NT$284. 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 Global Mixed-Mode Technology, with the most bullish analyst valuing it at NT$311 and the most bearish at NT$245 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Global Mixed-Mode Technology is an easy business to forecast or the the analysts are all using similar assumptions.

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 pretty clear that there is an expectation that Global Mixed-Mode Technology's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% per year. Factoring in the forecast slowdown in growth, it seems obvious that Global Mixed-Mode 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 Global Mixed-Mode Technology. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Global Mixed-Mode Technology going out to 2025, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Global Mixed-Mode Technology that we have uncovered.

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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.