Earnings Miss: Micro-Star International Co., Ltd. Missed EPS By 28% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that Micro-Star International Co., Ltd. (TWSE:2377) filed its quarterly result this time last week. The early response was not positive, with shares down 8.9% to NT$168 in the past week. Statutory earnings per share fell badly short of expectations, coming in at NT$2.05, some 28% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at NT$52b. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Micro-Star International

Taking into account the latest results, the current consensus from Micro-Star International's six analysts is for revenues of NT$222.6b in 2025. This would reflect a notable 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 65% to NT$13.81. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$220.8b and earnings per share (EPS) of NT$14.70 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at NT$186, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Micro-Star International at NT$235 per share, while the most bearish prices it at NT$143. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting Micro-Star International's growth to accelerate, with the forecast 11% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 21% annually. So it's clear that despite the acceleration in growth, Micro-Star International is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Micro-Star International going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Micro-Star International (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.

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.