Inventec Full Year 2024 Earnings: Revenues Beat Expectations, EPS In Line

Inventec (TWSE:2356) Full Year 2024 Results

Key Financial Results

• Revenue: NT$646.3b (up 26% from FY 2023).
• Net income: NT$7.27b (up 19% from FY 2023).
• Profit margin: 1.1% (down from 1.2% in FY 2023). The decrease in margin was driven by higher expenses.
• EPS: NT$2.03 (up from NT$1.71 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Inventec Revenues Beat Expectations

Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) was mostly in line with analyst estimates.

The primary driver behind last 12 months revenue was the Core Segment segment contributing a total revenue of NT$641.3b (99% of total revenue). Notably, cost of sales worth NT$612.9b amounted to 95% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Research & Development (R&D) costs, amounting to NT$12.6b (48% of total expenses). Explore how 2356's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Tech industry in Taiwan.

Performance of the Taiwanese Tech industry.

The company's shares are down 5.0% from a week ago.

Risk Analysis

You still need to take note of risks, for example - Inventec has 3 warning signs (and 2 which are a bit concerning) we think you should know about.

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.