Results: MiTAC Holdings Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

MiTAC Holdings Corporation (TPE:3706) investors will be delighted, with the company turning in some strong numbers with its latest results. MiTAC Holdings beat earnings, with revenues hitting NT$12b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 19%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for MiTAC Holdings

Taking into account the latest results, the current consensus from MiTAC Holdings' two analysts is for revenues of NT$51.2b in 2021, which would reflect a sizeable 23% increase on its sales over the past 12 months. Per-share earnings are expected to surge 31% to NT$3.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$50.2b and earnings per share (EPS) of NT$3.22 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at NT$32.20.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that MiTAC Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to grow 23%. If achieved, this would be a much better result than the 8.1% annual decline 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 5.0% per year. Not only are MiTAC Holdings' 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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for MiTAC Holdings going out as far as 2022, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for MiTAC Holdings that you need to take into consideration.

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