Chroma ATE Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for Chroma ATE Inc. (TWSE:2360), which a week ago released some disappointing first-quarter results that could have a notable impact on how the market views the stock. Chroma ATE missed analyst forecasts, with revenues of NT$4.4b and statutory earnings per share (EPS) of NT$2.25, falling short by 2.1% and 5.4% respectively. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Chroma ATE

Taking into account the latest results, the most recent consensus for Chroma ATE from nine analysts is for revenues of NT$21.1b in 2024. If met, it would imply a solid 13% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 24% to NT$11.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$21.6b and earnings per share (EPS) of NT$12.03 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of NT$308, suggesting the downgrades are not expected to have a long-term impact on Chroma ATE's 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. There are some variant perceptions on Chroma ATE, with the most bullish analyst valuing it at NT$350 and the most bearish at NT$280 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Chroma ATE is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Chroma ATE's past performance and to peers in the same industry. It's clear from the latest estimates that Chroma ATE's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 8.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Chroma ATE to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Chroma ATE. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at NT$308, 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 Chroma ATE analysts - 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 1 warning sign for Chroma ATE 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.