Analyst Estimates: Here's What Brokers Think Of Lite-On Technology Corporation (TWSE:2301) After Its Full-Year Report

As you might know, Lite-On Technology Corporation (TWSE:2301) recently reported its yearly numbers. It looks like the results were a bit of a negative overall. While revenues of NT$137b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.0% to hit NT$5.21 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lite-On Technology after the latest results.

See our latest analysis for Lite-On Technology

Following the latest results, Lite-On Technology's nine analysts are now forecasting revenues of NT$153.2b in 2025. This would be a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 29% to NT$6.68. In the lead-up to this report, the analysts had been modelling revenues of NT$151.7b and earnings per share (EPS) of NT$6.68 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of NT$118, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Lite-On Technology, with the most bullish analyst valuing it at NT$132 and the most bearish at NT$95.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 Lite-On Technology is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2025. If achieved, this would be a much better result than the 3.6% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually for the foreseeable future. So although Lite-On Technology's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lite-On Technology's revenue is expected to perform worse than the wider industry. The consensus price target held steady at NT$118, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Lite-On Technology analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Lite-On Technology has 1 warning sign we think you should be aware of.

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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.