Micro-Star International Co., Ltd. Just Missed EPS By 20%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Micro-Star International Co., Ltd. (TWSE:2377) released its annual result to the market. The early response was not positive, with shares down 6.6% to NT$171 in the past week. It was not a great result overall. While revenues of NT$198b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 20% to hit NT$8.04 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Micro-Star International

Taking into account the latest results, the consensus forecast from Micro-Star International's seven analysts is for revenues of NT$231.2b in 2025. This reflects a decent 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 57% to NT$12.65. Before this earnings report, the analysts had been forecasting revenues of NT$224.5b and earnings per share (EPS) of NT$13.37 in 2025. So it's pretty clear consensus is mixed on Micro-Star International after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

There's been no major changes to the price target of NT$182, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Micro-Star International at NT$210 per share, while the most bearish prices it at NT$146. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Micro-Star International's past performance and to peers in the same industry. The analysts are definitely expecting Micro-Star International's growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.3% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 17% per year. Micro-Star International is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Micro-Star International. They also upgraded their revenue forecasts, although the latest estimates suggest that Micro-Star International will grow in line with the overall industry. The consensus price target held steady at NT$182, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Micro-Star International. Long-term earnings power is much more important than next year's profits. 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..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Micro-Star International that you need to be mindful 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.