Wiwynn Corporation (TWSE:6669) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a pretty great week for Wiwynn Corporation (TWSE:6669) shareholders, with its shares surging 10% to NT$2,330 in the week since its latest annual results. Results were roughly in line with estimates, with revenues of NT$242b and statutory earnings per share of NT$68.88. 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. 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 17 analysts covering Wiwynn are now predicting revenues of NT$350.9b in 2024. If met, this would reflect a sizeable 45% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 49% to NT$103. In the lead-up to this report, the analysts had been modelling revenues of NT$359.0b and earnings per share (EPS) of NT$105 in 2024. 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.

What's most unexpected is that the consensus price target rose 7.4% to NT$2,606, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. 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$3,300 per share, while the most pessimistic values it at NT$2,100. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Wiwynn shareholders.

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. It's clear from the latest estimates that Wiwynn's rate of growth is expected to accelerate meaningfully, with the forecast 45% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% 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 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Wiwynn 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.