Giga-Byte Technology Co., Ltd. Just Missed EPS By 6.3%: Here's What Analysts Think Will Happen Next

There's been a notable change in appetite for Giga-Byte Technology Co., Ltd. (TWSE:2376) shares in the week since its yearly report, with the stock down 14% to NT$311. It was a pretty mixed result, with revenues beating expectations to hit NT$137b. Statutory earnings fell 6.3% short of analyst forecasts, reaching NT$7.46 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Giga-Byte Technology

Following the latest results, Giga-Byte Technology's nine analysts are now forecasting revenues of NT$202.3b in 2024. This would be a sizeable 48% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 65% to NT$12.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$179.4b and earnings per share (EPS) of NT$13.54 in 2024. Although revenue sentiment looks to be improving, the analysts have made a minor downgrade to per-share earnings estimates, perhaps acknowledging the investment required to grow the business.

There's been no major changes to the price target of NT$325, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Giga-Byte Technology at NT$453 per share, while the most bearish prices it at NT$200. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Giga-Byte Technology's rate of growth is expected to accelerate meaningfully, with the forecast 48% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 17% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Giga-Byte Technology is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Giga-Byte Technology. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

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

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Giga-Byte Technology that 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.