Hon Hai Precision Industry Co., Ltd. (TWSE:2317) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

It's been a good week for Hon Hai Precision Industry Co., Ltd. (TWSE:2317) shareholders, because the company has just released its latest second-quarter results, and the shares gained 9.2% to NT$184. Results were roughly in line with estimates, with revenues of NT$1.6t and statutory earnings per share of NT$2.50. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Hon Hai Precision Industry

After the latest results, the 17 analysts covering Hon Hai Precision Industry are now predicting revenues of NT$6.76t in 2024. If met, this would reflect a credible 7.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.8% to NT$11.49. Before this earnings report, the analysts had been forecasting revenues of NT$6.72t and earnings per share (EPS) of NT$11.33 in 2024. 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.

The analysts reconfirmed their price target of NT$241, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Hon Hai Precision Industry at NT$270 per share, while the most bearish prices it at NT$178. 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. The analysts are definitely expecting Hon Hai Precision Industry's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Hon Hai Precision Industry is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at NT$241, 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 Hon Hai Precision Industry going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Hon Hai Precision Industry 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.