Yageo Corporation (TWSE:2327) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for Yageo Corporation (TWSE:2327) shareholders, because the company has just released its latest full-year results, and the shares gained 4.1% to NT$563. It was a credible result overall, with revenues of NT$108b and statutory earnings per share of NT$41.80 both in line with analyst estimates, showing that Yageo 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Yageo after the latest results.

See our latest analysis for Yageo

Taking into account the latest results, the most recent consensus for Yageo from twelve analysts is for revenues of NT$121.2b in 2024. If met, it would imply a solid 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 17% to NT$48.95. Before this earnings report, the analysts had been forecasting revenues of NT$120.2b and earnings per share (EPS) of NT$50.72 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at NT$657, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Yageo analyst has a price target of NT$750 per share, while the most pessimistic values it at NT$585. This is a very narrow spread of estimates, implying either that Yageo is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Yageo's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% annually. Factoring in the forecast slowdown in growth, it looks like Yageo is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

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

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.