Analyst Estimates: Here's What Brokers Think Of HTC Corporation (TWSE:2498) After Its Annual Report

Shareholders might have noticed that HTC Corporation (TWSE:2498) filed its annual result this time last week. The early response was not positive, with shares down 6.2% to NT$45.90 in the past week. Revenues were a bright spot, with NT$4.4b in revenue arriving 3.0% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of NT$4.09, some 2.7% below consensus predictions. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for HTC

Taking into account the latest results, the consensus forecast from HTC's three analysts is for revenues of NT$6.52b in 2024. This reflects a substantial 48% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 18% from last year to NT$3.35. Before this earnings announcement, the analysts had been modelling revenues of NT$6.26b and losses of NT$2.34 per share in 2024. While this year's revenue estimates increased, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target stayed unchanged at NT$55.67, seeming to suggest that higher forecast losses are not expected to have a long term impact on the 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 HTC, with the most bullish analyst valuing it at NT$62.00 and the most bearish at NT$52.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. One thing stands out from these estimates, which is that HTC is forecast to grow faster in the future than it has in the past, with revenues expected to display 48% annualised growth until the end of 2024. If achieved, this would be a much better result than the 34% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 16% annually. Not only are HTC's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at HTC. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple HTC analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with HTC .

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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.