ITEQ Corporation Just Missed EPS By 23%: Here's What Analysts Think Will Happen Next

As you might know, ITEQ Corporation (TWSE:6213) recently reported its yearly numbers. Statutory earnings per share fell badly short of expectations, coming in at NT$2.26, some 23% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at NT$29b. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for ITEQ

Following the latest results, ITEQ's six analysts are now forecasting revenues of NT$32.4b in 2025. This would be a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 93% to NT$4.38. Before this earnings report, the analysts had been forecasting revenues of NT$33.5b and earnings per share (EPS) of NT$5.00 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the NT$78.54 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 ITEQ at NT$105 per share, while the most bearish prices it at NT$62.00. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting ITEQ's growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, ITEQ is expected to grow slower than the wider 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at NT$78.54, with the latest estimates not enough to have an impact on their price targets.

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 ITEQ going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for ITEQ that 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.