Earnings Beat: Arcadyan Technology Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Shareholders of Arcadyan Technology Corporation (TWSE:3596) will be pleased this week, given that the stock price is up 13% to NT$179 following its latest third-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at NT$12b, statutory earnings beat expectations by a notable 14%, coming in at NT$2.98 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Arcadyan Technology

Taking into account the latest results, the current consensus from Arcadyan Technology's four analysts is for revenues of NT$52.7b in 2025. This would reflect an okay 3.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.1% to NT$12.52. Before this earnings report, the analysts had been forecasting revenues of NT$53.3b and earnings per share (EPS) of NT$11.45 in 2025. So the consensus seems to have become somewhat more optimistic on Arcadyan Technology's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.5% to NT$180. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Arcadyan Technology at NT$195 per share, while the most bearish prices it at NT$156. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's pretty clear that there is an expectation that Arcadyan Technology's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that Arcadyan Technology is also expected to grow slower than other industry participants.

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 Arcadyan Technology following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Arcadyan Technology's revenue is expected to perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Arcadyan 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 Arcadyan Technology going out to 2025, and you can see them free on our platform here..

Even so, be aware that Arcadyan 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.