King Slide Works Co., Ltd. (TWSE:2059) Just Reported Full-Year Earnings And Analysts Are Lifting Their Estimates

Shareholders of King Slide Works Co., Ltd. (TWSE:2059) will be pleased this week, given that the stock price is up 11% to NT$1,865 following its latest full-year results. The result was positive overall - although revenues of NT$10b were in line with what the analysts predicted, King Slide Works surprised by delivering a statutory profit of NT$63.44 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on King Slide Works after the latest results.

Check out our latest analysis for King Slide Works

Taking into account the latest results, the most recent consensus for King Slide Works from six analysts is for revenues of NT$13.8b in 2025. If met, it would imply a sizeable 36% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 28% to NT$82.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$12.6b and earnings per share (EPS) of NT$68.87 in 2025. So it seems there's been a definite increase in optimism about King Slide Works' future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.0% to NT$1,911per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values King Slide Works at NT$2,300 per share, while the most bearish prices it at NT$1,680. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's clear from the latest estimates that King Slide Works' rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect King Slide Works to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around King Slide Works' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on King Slide Works. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple King Slide Works analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for King Slide Works you should be aware of, and 1 of them shouldn't be ignored.

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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.