Earnings Beat: Tong Hsing Electronic Industries, Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Tong Hsing Electronic Industries, Ltd. (TWSE:6271) shareholders are probably feeling a little disappointed, since its shares fell 4.3% to NT$135 in the week after its latest second-quarter results. It looks like a credible result overall - although revenues of NT$3.1b were in line with what the analysts predicted, Tong Hsing Electronic Industries surprised by delivering a statutory profit of NT$2.11 per share, a notable 11% above expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Tong Hsing Electronic Industries

After the latest results, the six analysts covering Tong Hsing Electronic Industries are now predicting revenues of NT$12.4b in 2024. If met, this would reflect an okay 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 5.9% to NT$7.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$12.6b and earnings per share (EPS) of NT$7.92 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of NT$157, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Tong Hsing Electronic Industries analyst has a price target of NT$190 per share, while the most pessimistic values it at NT$140. 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 Tong Hsing Electronic Industries shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Tong Hsing Electronic Industries'historical trends, as the 9.6% annualised revenue growth to the end of 2024 is roughly in line with the 10% 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 13% per year. So although Tong Hsing Electronic Industries 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 to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Tong Hsing Electronic Industries' revenue is expected to perform worse than the wider industry. The consensus price target held steady at NT$157, 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 Tong Hsing Electronic Industries going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Tong Hsing Electronic Industries .

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com