Results: Tong Hsing Electronic Industries, Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders might have noticed that Tong Hsing Electronic Industries, Ltd. (TWSE:6271) filed its quarterly result this time last week. The early response was not positive, with shares down 9.0% to NT$127 in the past week. It looks like a credible result overall - although revenues of NT$3.1b were what the analysts expected, Tong Hsing Electronic Industries surprised by delivering a (statutory) profit of NT$2.53 per share, an impressive 28% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Tong Hsing Electronic Industries

Taking into account the latest results, the consensus forecast from Tong Hsing Electronic Industries' six analysts is for revenues of NT$13.3b in 2025. This reflects a modest 7.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.2% to NT$9.08. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$13.6b and earnings per share (EPS) of NT$9.29 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the NT$152 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on Tong Hsing Electronic Industries, with the most bullish analyst valuing it at NT$190 and the most bearish at NT$130 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Tong Hsing Electronic Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.3% growth on an annualised basis. This is compared to a historical growth rate of 8.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. Factoring in the forecast slowdown in growth, it seems obvious that Tong Hsing Electronic Industries is also expected to grow slower than other industry participants.

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$152, 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 Tong Hsing Electronic Industries going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Tong Hsing Electronic Industries 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.