Earnings Beat: Ennoconn Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Ennoconn Corporation (TWSE:6414) shareholders are probably feeling a little disappointed, since its shares fell 4.2% to NT$286 in the week after its latest annual results. Ennoconn reported NT$146b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of NT$20.03 beat expectations, being 8.0% higher than what the analysts 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the five analysts covering Ennoconn are now predicting revenues of NT$169.2b in 2025. If met, this would reflect a notable 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 19% to NT$22.75. In the lead-up to this report, the analysts had been modelling revenues of NT$170.9b and earnings per share (EPS) of NT$23.13 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Ennoconn

It will come as no surprise then, to learn that the consensus price target is largely unchanged at NT$369. 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. Currently, the most bullish analyst values Ennoconn at NT$435 per share, while the most bearish prices it at NT$340. This is a very narrow spread of estimates, implying either that Ennoconn is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Ennoconn's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Ennoconn is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at NT$369, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Ennoconn. Long-term earnings power is much more important than next year's profits. We have forecasts for Ennoconn going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Ennoconn you should know about.

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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.