Genius Electronic Optical Co.,Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Genius Electronic Optical Co.,Ltd. (TWSE:3406) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. Genius Electronic OpticalLtd delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting NT$5.0b-13% above indicated-andNT$8.86-103% above forecasts- respectively 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Genius Electronic OpticalLtd

Following last week's earnings report, Genius Electronic OpticalLtd's seven analysts are forecasting 2024 revenues to be NT$25.4b, approximately in line with the last 12 months. Statutory earnings per share are forecast to descend 20% to NT$34.16 in the same period. Before this earnings report, the analysts had been forecasting revenues of NT$25.4b and earnings per share (EPS) of NT$33.76 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.

There were no changes to revenue or earnings estimates or the price target of NT$568, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Genius Electronic OpticalLtd at NT$800 per share, while the most bearish prices it at NT$435. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.7% by the end of 2024. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Genius Electronic OpticalLtd is expected to lag 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Genius Electronic OpticalLtd analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Genius Electronic OpticalLtd (1 doesn't sit too well with us!) 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.