Earnings Miss: Delta Electronics, Inc. Missed EPS By 16% And Analysts Are Revising Their Forecasts

As you might know, Delta Electronics, Inc. (TWSE:2308) last week released its latest third-quarter, and things did not turn out so great for shareholders. Delta Electronics missed earnings this time around, with NT$112b revenue coming in 4.1% below what the analysts had modelled. Statutory earnings per share (EPS) of NT$3.74 also fell short of expectations by 16%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Delta Electronics

Taking into account the latest results, the current consensus from Delta Electronics' 17 analysts is for revenues of NT$485.4b in 2025. This would reflect a decent 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 28% to NT$18.30. In the lead-up to this report, the analysts had been modelling revenues of NT$491.7b and earnings per share (EPS) of NT$18.27 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of NT$482, suggesting that the company has met expectations in its recent result. 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 Delta Electronics at NT$525 per share, while the most bearish prices it at NT$352. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Delta Electronics' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Delta Electronics is expected to grow at about the same rate as the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at NT$482, 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 estimates - from multiple Delta Electronics analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Delta Electronics Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.