Sercomm Corporation (TWSE:5388) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week saw the newest annual earnings release from Sercomm Corporation (TWSE:5388), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of NT$57b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.7% to hit NT$7.49 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Sercomm

Taking into account the latest results, the current consensus from Sercomm's two analysts is for revenues of NT$66.2b in 2025. This would reflect a solid 17% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 27% to NT$9.64. Before this earnings report, the analysts had been forecasting revenues of NT$63.8b and earnings per share (EPS) of NT$8.91 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of NT$142, suggesting that the forecast performance does not have a long term impact on the company's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sercomm's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 15% annual growth 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 revenues grow 25% per year. So although Sercomm is expected to maintain its revenue growth rate, it's forecast to grow slower than 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 Sercomm following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to 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.

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 analyst estimates for Sercomm going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Sercomm has 1 warning sign we think you should be aware 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.