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

It's been a good week for Wiwynn Corporation (TWSE:6669) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.6% to NT$2,390. Wiwynn reported NT$70b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of NT$26.92 beat expectations, being 6.0% 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Wiwynn

After the latest results, the 16 analysts covering Wiwynn are now predicting revenues of NT$367.7b in 2024. If met, this would reflect a huge 55% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 51% to NT$116. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$353.3b and earnings per share (EPS) of NT$109 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.4% to NT$2,871per share. 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. The most optimistic Wiwynn analyst has a price target of NT$3,400 per share, while the most pessimistic values it at NT$2,300. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The analysts are definitely expecting Wiwynn's growth to accelerate, with the forecast 79% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Wiwynn to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Wiwynn's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 estimates - from multiple Wiwynn analysts - 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 Wiwynn 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.