Earnings Beat: Yageo Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Yageo Corporation (TWSE:2327) shareholders are probably feeling a little disappointed, since its shares fell 4.9% to NT$588 in the week after its latest first-quarter results. It looks like a credible result overall - although revenues of NT$29b were in line with what the analysts predicted, Yageo surprised by delivering a statutory profit of NT$11.02 per share, a notable 14% above expectations. 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. 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 Yageo

Taking into account the latest results, the current consensus from Yageo's 13 analysts is for revenues of NT$121.7b in 2024. This would reflect a meaningful 11% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 12% to NT$47.77. In the lead-up to this report, the analysts had been modelling revenues of NT$122.1b and earnings per share (EPS) of NT$46.99 in 2024. 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$681, 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. Currently, the most bullish analyst values Yageo at NT$795 per share, while the most bearish prices it at NT$625. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yageo's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Yageo'shistorical trends, as the 14% annualised revenue growth to the end of 2024 is roughly in line with the 17% annual growth 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 revenues grow 11% per year. So although Yageo is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. 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.

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 Yageo analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Yageo that you need to take into consideration.

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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.