NT$47.50: That's What Analysts Think HTC Corporation (TWSE:2498) Is Worth After Its Latest Results

Last week, you might have seen that HTC Corporation (TWSE:2498) released its second-quarter result to the market. The early response was not positive, with shares down 9.8% to NT$38.75 in the past week. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HTC after the latest results.

View our latest analysis for HTC

Taking into account the latest results, the current consensus from HTC's twin analysts is for revenues of NT$4.91b in 2024. This would reflect a substantial 34% increase on its revenue over the past 12 months. Losses are forecast to narrow 5.7% to NT$4.00 per share. Before this earnings announcement, the analysts had been modelling revenues of NT$4.85b and losses of NT$4.39 per share in 2024. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

The consensus price target fell 10% to NT$47.50despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HTC's past performance and to peers in the same industry. 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 80% annualised growth until the end of 2024. If achieved, this would be a much better result than the 24% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 19% per year. 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 take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It might also be worth considering whether HTC's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.