Here's What Analysts Are Forecasting For Acer Incorporated (TWSE:2353) After Its Yearly Results

Last week, you might have seen that Acer Incorporated (TWSE:2353) released its annual result to the market. The early response was not positive, with shares down 3.7% to NT$45.30 in the past week. Results were roughly in line with estimates, with revenues of NT$241b and statutory earnings per share of NT$1.64. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Acer

Taking into account the latest results, the consensus forecast from Acer's six analysts is for revenues of NT$254.3b in 2024. This reflects a credible 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 23% to NT$2.02. Before this earnings report, the analysts had been forecasting revenues of NT$262.6b and earnings per share (EPS) of NT$1.99 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of NT$29.49, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Acer's market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Acer, with the most bullish analyst valuing it at NT$35.00 and the most bearish at NT$19.90 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Acer's past performance and to peers in the same industry. It's clear from the latest estimates that Acer's rate of growth is expected to accelerate meaningfully, with the forecast 5.4% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 16% annually. So it's clear that despite the acceleration in growth, Acer is expected to grow meaningfully slower than the industry average.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at NT$29.49, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Acer analysts - going out to 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Acer 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.