Stock Analysis

WT Microelectronics Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

It's been a good week for WT Microelectronics Co., Ltd. (TWSE:3036) shareholders, because the company has just released its latest third-quarter results, and the shares gained 6.8% to NT$117. It looks like a credible result overall - although revenues of NT$261b were in line with what the analysts predicted, WT Microelectronics surprised by delivering a statutory profit of NT$2.54 per share, a notable 11% above expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for WT Microelectronics

earnings-and-revenue-growth
TWSE:3036 Earnings and Revenue Growth November 7th 2024

Taking into account the latest results, the consensus forecast from WT Microelectronics' five analysts is for revenues of NT$1.09t in 2025. This reflects a sizeable 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 80% to NT$11.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$1.11t and earnings per share (EPS) of NT$11.98 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of NT$135, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on WT Microelectronics, with the most bullish analyst valuing it at NT$150 and the most bearish at NT$125 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. We can infer from the latest estimates that forecasts expect a continuation of WT Microelectronics'historical trends, as the 18% annualised revenue growth to the end of 2025 is roughly in line with the 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. So although WT Microelectronics is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still 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.

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. At Simply Wall St, we have a full range of analyst estimates for WT Microelectronics going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with WT Microelectronics .

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

About TWSE:3036

WT Microelectronics

Develops and sells electronic and communication components in the United States, Taiwan, China, and internationally.

Solid track record with adequate balance sheet.

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