Results: King Slide Works Co., Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

King Slide Works Co., Ltd. (TWSE:2059) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of NT$1.9b, some 6.7% above estimates, and statutory earnings per share (EPS) coming in at NT$14.55, 45% ahead of expectations. 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 King Slide Works

Taking into account the latest results, the consensus forecast from King Slide Works' eight analysts is for revenues of NT$9.06b in 2024. This reflects a huge 39% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 31% to NT$49.98. Before this earnings report, the analysts had been forecasting revenues of NT$8.79b and earnings per share (EPS) of NT$45.12 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a solid gain to earnings per share in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of NT$1,565, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic King Slide Works analyst has a price target of NT$1,680 per share, while the most pessimistic values it at NT$1,337. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the King Slide Works' past performance and to peers in the same industry. It's clear from the latest estimates that King Slide Works' rate of growth is expected to accelerate meaningfully, with the forecast 55% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that King Slide Works is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards King Slide Works following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at NT$1,565, with the latest estimates not enough to have an impact on their price targets.

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 King Slide Works 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 King Slide Works 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.