Zhen Ding Technology Holding Limited Just Recorded A 35% EPS Beat: Here's What Analysts Are Forecasting Next

Zhen Ding Technology Holding Limited (TWSE:4958) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of NT$51b, some 8.5% above estimates, and statutory earnings per share (EPS) coming in at NT$3.52, 35% ahead of expectations. 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.

View our latest analysis for Zhen Ding Technology Holding

After the latest results, the nine analysts covering Zhen Ding Technology Holding are now predicting revenues of NT$188.0b in 2025. If met, this would reflect a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 27% to NT$11.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$187.5b and earnings per share (EPS) of NT$11.04 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of NT$149, suggesting that the company has met expectations in its recent result. 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. The most optimistic Zhen Ding Technology Holding analyst has a price target of NT$180 per share, while the most pessimistic values it at NT$120. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting Zhen Ding Technology Holding's growth to accelerate, with the forecast 8.4% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. So it's clear that despite the acceleration in growth, Zhen Ding Technology Holding is expected to grow meaningfully slower than the industry average.

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. At Simply Wall St, we have a full range of analyst estimates for Zhen Ding Technology Holding going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Zhen Ding Technology Holding that you need to be mindful of.

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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.