Tripod Technology Corporation (TWSE:3044) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that Tripod Technology Corporation (TWSE:3044) released its second-quarter result to the market. The early response was not positive, with shares down 4.1% to NT$189 in the past week. Results were roughly in line with estimates, with revenues of NT$16b and statutory earnings per share of NT$3.78. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Tripod Technology

After the latest results, the five analysts covering Tripod Technology are now predicting revenues of NT$66.1b in 2024. If met, this would reflect a satisfactory 6.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 7.2% to NT$15.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$66.3b and earnings per share (EPS) of NT$15.77 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at NT$268. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Tripod Technology, with the most bullish analyst valuing it at NT$305 and the most bearish at NT$205 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Tripod Technology's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.3% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Tripod Technology is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 in mind, we wouldn't be too quick to come to a conclusion on Tripod Technology. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Tripod Technology going out to 2026, and you can see them free on our platform here..

Even so, be aware that Tripod Technology is showing 1 warning sign in our investment analysis , you should know about...

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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.