ASUSTeK Computer Inc. Just Recorded A 28% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in ASUSTeK Computer Inc. (TWSE:2357) had a good week, as its shares rose 3.0% to close at NT$614 following the release of its quarterly results. Revenues were NT$167b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at NT$16.75, an impressive 28% ahead of estimates. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for ASUSTeK Computer

After the latest results, the eleven analysts covering ASUSTeK Computer are now predicting revenues of NT$678.8b in 2025. If met, this would reflect a huge 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.8% to NT$47.08. In the lead-up to this report, the analysts had been modelling revenues of NT$676.3b and earnings per share (EPS) of NT$44.05 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 12% to NT$705. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic ASUSTeK Computer analyst has a price target of NT$810 per share, while the most pessimistic values it at NT$410. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 18% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 19% per year. ASUSTeK Computer is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on ASUSTeK Computer. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple ASUSTeK Computer analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for ASUSTeK Computer that you need to be mindful of.

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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.