Lite-On Technology Corporation (TWSE:2301) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a good week for Lite-On Technology Corporation (TWSE:2301) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.9% to NT$106. It was a credible result overall, with revenues of NT$33b and statutory earnings per share of NT$1.35 both in line with analyst estimates, showing that Lite-On Technology is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Lite-On Technology

Following last week's earnings report, Lite-On Technology's ten analysts are forecasting 2024 revenues to be NT$139.8b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 3.0% to NT$5.70 in the same period. Before this earnings report, the analysts had been forecasting revenues of NT$140.2b and earnings per share (EPS) of NT$5.86 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at NT$116, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Lite-On Technology at NT$133 per share, while the most bearish prices it at NT$88.80. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Lite-On Technology shareholders.

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. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2024. Historically, Lite-On Technology's top line has shrunk approximately 3.5% annually 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 20% annually. So it's pretty clear that, although revenues are improving, Lite-On Technology is still expected to grow slower than the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lite-On Technology. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at NT$116, 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. We have forecasts for Lite-On Technology going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Lite-On Technology 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com