Lite-On Technology Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Lite-On Technology Corporation (TWSE:2301) just released its latest third-quarter report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at NT$37b, statutory earnings missed forecasts by 13%, coming in at just NT$1.47 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out 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 solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 29% to NT$6.95. In the lead-up to this report, the analysts had been modelling revenues of NT$156.6b and earnings per share (EPS) of NT$7.01 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of NT$115, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Lite-On Technology's market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Lite-On Technology analyst has a price target of NT$133 per share, while the most pessimistic values it at NT$88.80. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. 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 10% annualised growth until the end of 2025. If achieved, this would be a much better result than the 3.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 21% per year. Although Lite-On Technology's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. With that said, earnings are more important to the long-term value of the business. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Lite-On Technology going out to 2026, and you can see them free on our platform here.

Even so, be aware that Lite-On Technology is showing 1 warning sign in our investment analysis , you should know about...

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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.