Gold Circuit Electronics Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that Gold Circuit Electronics Ltd. (TWSE:2368) released its quarterly result to the market. The early response was not positive, with shares down 4.5% to NT$180 in the past week. It looks like the results were a bit of a negative overall. While revenues of NT$10b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.1% to hit NT$3.28 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Gold Circuit Electronics

After the latest results, the eight analysts covering Gold Circuit Electronics are now predicting revenues of NT$44.2b in 2025. If met, this would reflect a notable 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 27% to NT$14.26. Before this earnings report, the analysts had been forecasting revenues of NT$45.4b and earnings per share (EPS) of NT$14.72 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of NT$261, suggesting the downgrades are not expected to have a long-term impact on Gold Circuit Electronics' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Gold Circuit Electronics analyst has a price target of NT$330 per share, while the most pessimistic values it at NT$220. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Gold Circuit Electronics'historical trends, as the 14% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 14% per year. So although Gold Circuit Electronics is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 Gold Circuit Electronics. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at NT$261, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Gold Circuit Electronics going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Gold Circuit Electronics (1 is significant!) that you need to take into consideration.

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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.