Qisda Corporation Just Missed EPS By 11%: Here's What Analysts Think Will Happen Next

Qisda Corporation (TWSE:2352) shareholders are probably feeling a little disappointed, since its shares fell 6.9% to NT$43.70 in the week after its latest annual results. Revenues were in line with forecasts, at NT$204b, although statutory earnings per share came in 11% below what the analysts expected, at NT$1.51 per share. 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 Qisda

Following the latest results, Qisda's three analysts are now forecasting revenues of NT$215.0b in 2024. This would be a reasonable 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 39% to NT$2.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$223.3b and earnings per share (EPS) of NT$2.56 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The consensus price target fell 22% to NT$42.00, with the weaker earnings outlook clearly leading valuation estimates.

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 pretty clear that there is an expectation that Qisda's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.6% growth on an annualised basis. This is compared to a historical growth rate of 8.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 16% annually. Factoring in the forecast slowdown in growth, it seems obvious that Qisda is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Qisda. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Qisda. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Qisda analysts - going out to 2025, and you can see them free on our platform here.

Even so, be aware that Qisda is showing 3 warning signs in our investment analysis , 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.