Chroma ATE Inc. (TWSE:2360) Just Released Its Annual Results And Analysts Are Updating Their Estimates

As you might know, Chroma ATE Inc. (TWSE:2360) recently reported its yearly numbers. Chroma ATE reported in line with analyst predictions, delivering revenues of NT$22b and statutory earnings per share of NT$12.38, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Chroma ATE

Taking into account the latest results, the consensus forecast from Chroma ATE's twelve analysts is for revenues of NT$26.1b in 2025. This reflects a substantial 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 37% to NT$17.03. In the lead-up to this report, the analysts had been modelling revenues of NT$26.0b and earnings per share (EPS) of NT$16.60 in 2025. So the consensus seems to have become somewhat more optimistic on Chroma ATE's earnings potential following these results.

There's been no major changes to the consensus price target of NT$460, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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. The most optimistic Chroma ATE analyst has a price target of NT$505 per share, while the most pessimistic values it at NT$322. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Chroma ATE's growth to accelerate, with the forecast 21% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Chroma ATE is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Chroma ATE's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Chroma ATE going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Chroma ATE you should be aware 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.