Chicony Electronics Co., Ltd. Just Beat EPS By 5.5%: Here's What Analysts Think Will Happen Next

The quarterly results for Chicony Electronics Co., Ltd. (TWSE:2385) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of NT$23b were in line with what the analysts predicted, Chicony Electronics surprised by delivering a statutory profit of NT$2.42 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Chicony Electronics

Taking into account the latest results, the consensus forecast from Chicony Electronics' five analysts is for revenues of NT$106.6b in 2024. This reflects a decent 8.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 16% to NT$12.39. In the lead-up to this report, the analysts had been modelling revenues of NT$108.0b and earnings per share (EPS) of NT$12.50 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at NT$255. 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. Currently, the most bullish analyst values Chicony Electronics at NT$280 per share, while the most bearish prices it at NT$220. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Chicony Electronics is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Chicony Electronics' rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 17% annually. 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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Chicony Electronics' revenue is expected to 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.

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 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.