Wistron Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Investors in Wistron Corporation (TWSE:3231) had a good week, as its shares rose 7.1% to close at NT$102 following the release of its second-quarter results. The result was positive overall - although revenues of NT$240b were in line with what the analysts predicted, Wistron surprised by delivering a statutory profit of NT$1.53 per share, modestly greater than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Wistron

After the latest results, the twelve analysts covering Wistron are now predicting revenues of NT$1.02t in 2024. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 17% to NT$6.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$1.01t and earnings per share (EPS) of NT$6.15 in 2024. So the consensus seems to have become somewhat more optimistic on Wistron's earnings potential following these results.

There's been no major changes to the consensus price target of NT$146, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Wistron analyst has a price target of NT$170 per share, while the most pessimistic values it at NT$100.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wistron's past performance and to peers in the same industry. The analysts are definitely expecting Wistron's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.7% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 20% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Wistron is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Wistron following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at NT$146, 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 estimates - from multiple Wistron analysts - 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 Wistron 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.