Pegatron Corporation (TWSE:4938) Yearly Results: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Pegatron Corporation (TWSE:4938) filed its annual result this time last week. The early response was not positive, with shares down 2.8% to NT$91.00 in the past week. Revenues of NT$1.1t were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at NT$6.34, missing estimates by 4.1%. 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.

View our latest analysis for Pegatron

Taking into account the latest results, the most recent consensus for Pegatron from 13 analysts is for revenues of NT$1.24t in 2025. If met, it would imply a solid 10% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 6.1% to NT$6.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$1.25t and earnings per share (EPS) of NT$6.90 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at NT$98.80, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Pegatron analyst has a price target of NT$120 per share, while the most pessimistic values it at NT$86.60. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Pegatron shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Pegatron is forecast to grow faster in the future than it has in the past, with revenues expected to display 10% annualised growth until the end of 2025. If achieved, this would be a much better result than the 3.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 17% per year. So although Pegatron's revenue growth is expected to improve, it is still expected to grow slower than the 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pegatron's revenue is expected to perform worse than the wider industry. The consensus price target held steady at NT$98.80, 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 forecasts for Pegatron going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Pegatron , and understanding this should be part of your investment process.

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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.