Analyst Estimates: Here's What Brokers Think Of LARGAN Precision Co.,Ltd (TWSE:3008) After Its Second-Quarter Report

LARGAN Precision Co.,Ltd (TWSE:3008) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a credible result overall, with revenues of NT$11b and statutory earnings per share of NT$33.53 both in line with analyst estimates, showing that LARGAN PrecisionLtd is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on LARGAN PrecisionLtd after the latest results.

See our latest analysis for LARGAN PrecisionLtd

After the latest results, the 18 analysts covering LARGAN PrecisionLtd are now predicting revenues of NT$58.4b in 2024. If met, this would reflect a notable 8.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 9.5% to NT$177. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$58.2b and earnings per share (EPS) of NT$168 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at NT$3,421, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values LARGAN PrecisionLtd at NT$3,940 per share, while the most bearish prices it at NT$2,500. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await LARGAN PrecisionLtd shareholders.

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. For example, we noticed that LARGAN PrecisionLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 18% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 4.9% a year 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 13% per year. Not only are LARGAN PrecisionLtd'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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around LARGAN PrecisionLtd's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at NT$3,421, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for LARGAN PrecisionLtd going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for LARGAN PrecisionLtd that you need to take into consideration.

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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.