Inventec Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that Inventec Corporation (TWSE:2356) released its third-quarter result to the market. The early response was not positive, with shares down 2.1% to NT$51.00 in the past week. Revenues were in line with forecasts, at NT$164b, although statutory earnings per share came in 16% below what the analysts expected, at NT$0.56 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Inventec

Following the latest results, Inventec's ten analysts are now forecasting revenues of NT$689.3b in 2025. This would be a notable 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 40% to NT$2.69. Before this earnings report, the analysts had been forecasting revenues of NT$676.0b and earnings per share (EPS) of NT$2.91 in 2025. 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.

It might be a surprise to learn that the consensus price target was broadly unchanged at NT$52.09, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Inventec analyst has a price target of NT$61.00 per share, while the most pessimistic values it at NT$38.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting Inventec's growth to accelerate, with the forecast 15% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 21% annually. So it's clear that despite the acceleration in growth, Inventec is expected to grow meaningfully slower than the industry average.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Inventec's revenue is expected to perform worse than the wider industry. The consensus price target held steady at NT$52.09, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Inventec. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Inventec going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Inventec (1 is potentially serious!) that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.