ASUSTeK Computer Inc. Just Recorded A 140% EPS Beat: Here's What Analysts Are Forecasting Next

ASUSTeK Computer Inc. (TWSE:2357) just released its second-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 7.9% to hit NT$145b. ASUSTeK Computer also reported a statutory profit of NT$15.90, which was an impressive 140% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for ASUSTeK Computer

Taking into account the latest results, the current consensus from ASUSTeK Computer's eleven analysts is for revenues of NT$589.9b in 2024. This would reflect a decent 13% increase on its revenue over the past 12 months. Statutory per share are forecast to be NT$43.06, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$564.7b and earnings per share (EPS) of NT$33.06 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very substantial lift in earnings per share in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to NT$630per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ASUSTeK Computer, with the most bullish analyst valuing it at NT$760 and the most bearish at NT$410 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ASUSTeK Computer shareholders.

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. The analysts are definitely expecting ASUSTeK Computer's growth to accelerate, with the forecast 28% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ASUSTeK Computer to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ASUSTeK Computer following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for ASUSTeK Computer going out to 2026, and you can see them free on our platform here..

Even so, be aware that ASUSTeK Computer is showing 1 warning sign 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.