Chicony Electronics Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Chicony Electronics Co., Ltd. (TWSE:2385) shareholders are probably feeling a little disappointed, since its shares fell 7.2% to NT$154 in the week after its latest third-quarter results. Revenues of NT$28b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at NT$3.29, missing estimates by 7.8%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Chicony Electronics after the latest results.

Check out our latest analysis for Chicony Electronics

Taking into account the latest results, the consensus forecast from Chicony Electronics' six analysts is for revenues of NT$110.3b in 2025. This reflects a notable 11% improvement in revenue compared to the last 12 months. Chicony Electronics is also expected to turn profitable, with statutory earnings of NT$12.87 per share. Before this earnings report, the analysts had been forecasting revenues of NT$113.5b and earnings per share (EPS) of NT$13.31 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of NT$199, suggesting the downgrades are not expected to have a long-term impact on Chicony Electronics' 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. There are some variant perceptions on Chicony Electronics, with the most bullish analyst valuing it at NT$205 and the most bearish at NT$195 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Chicony Electronics' rate of growth is expected to accelerate meaningfully, with the forecast 8.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.1% 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 21% per year. So it's clear that despite the acceleration in growth, Chicony Electronics 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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 Chicony Electronics. Long-term earnings power is much more important than next year's profits. We have forecasts for Chicony Electronics going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Chicony Electronics' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.