Earnings Miss: Wistron NeWeb Corporation Missed EPS By 48% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Wistron NeWeb Corporation (TWSE:6285), given that the company fell short of expectations when it released its third-quarter results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at NT$26b, statutory earnings missed forecasts by an incredible 48%, coming in at just NT$1.09 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wistron NeWeb after the latest results.

View our latest analysis for Wistron NeWeb

Following the latest results, Wistron NeWeb's five analysts are now forecasting revenues of NT$121.8b in 2025. This would be a solid 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 28% to NT$8.69. In the lead-up to this report, the analysts had been modelling revenues of NT$124.7b and earnings per share (EPS) of NT$9.38 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the NT$136 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Wistron NeWeb, with the most bullish analyst valuing it at NT$151 and the most bearish at NT$118 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's pretty clear that there is an expectation that Wistron NeWeb's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.0% growth on an annualised basis. This is compared to a historical growth rate of 16% 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 16% annually. Factoring in the forecast slowdown in growth, it seems obvious that Wistron NeWeb 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$136, 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 Wistron NeWeb going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Wistron NeWeb that you need to take into consideration.

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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.