Unimicron Technology Corp. (TWSE:3037) Released Earnings Last Week And Analysts Lifted Their Price Target To NT$220

Shareholders might have noticed that Unimicron Technology Corp. (TWSE:3037) filed its yearly result this time last week. The early response was not positive, with shares down 6.1% to NT$178 in the past week. Results were roughly in line with estimates, with revenues of NT$104b and statutory earnings per share of NT$7.78. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Unimicron Technology

Taking into account the latest results, the current consensus from Unimicron Technology's 14 analysts is for revenues of NT$118.6b in 2024. This would reflect a notable 14% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 20% to NT$9.46. In the lead-up to this report, the analysts had been modelling revenues of NT$124.4b and earnings per share (EPS) of NT$10.45 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The average price target climbed 6.8% to NT$220despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. 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 Unimicron Technology, with the most bullish analyst valuing it at NT$300 and the most bearish at NT$120 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Unimicron Technology's growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Unimicron Technology is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Unimicron Technology analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Unimicron Technology that we have uncovered.

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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.