Wistron NeWeb Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a mediocre week for Wistron NeWeb Corporation (TWSE:6285) shareholders, with the stock dropping 12% to NT$122 in the week since its latest quarterly results. The result was positive overall - although revenues of NT$31b were in line with what the analysts predicted, Wistron NeWeb surprised by delivering a statutory profit of NT$2.42 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Wistron NeWeb

Following last week's earnings report, Wistron NeWeb's four analysts are forecasting 2024 revenues to be NT$114.2b, approximately in line with the last 12 months. Statutory per share are forecast to be NT$8.57, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of NT$122.3b and earnings per share (EPS) of NT$9.58 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 19% to NT$147. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Wistron NeWeb, with the most bullish analyst valuing it at NT$200 and the most bearish at NT$125 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.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.7% by the end of 2024. This indicates a significant reduction from annual growth of 16% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 15% annually for the foreseeable future. It's pretty clear that Wistron NeWeb's revenues are expected to perform substantially worse 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Wistron NeWeb's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Wistron NeWeb going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Wistron NeWeb 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.