Earnings Miss: Nan Ya Printed Circuit Board Corporation Missed EPS By 90% And Analysts Are Revising Their Forecasts

Nan Ya Printed Circuit Board Corporation (TWSE:8046) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a pretty bad result, all things considered. Although revenues of NT$9.2b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 90% to hit NT$0.09 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Nan Ya Printed Circuit Board

Taking into account the latest results, the consensus forecast from Nan Ya Printed Circuit Board's nine analysts is for revenues of NT$42.1b in 2025. This reflects a substantial 25% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 519% to NT$8.32. Before this earnings report, the analysts had been forecasting revenues of NT$43.5b and earnings per share (EPS) of NT$9.16 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.

The consensus price target fell 7.8% to NT$135, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Nan Ya Printed Circuit Board analyst has a price target of NT$205 per share, while the most pessimistic values it at NT$93.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Nan Ya Printed Circuit Board's growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Nan Ya Printed Circuit Board is expected to grow much faster than its 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. They also downgraded Nan Ya Printed Circuit Board's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Nan Ya Printed Circuit Board 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 2 warning signs for Nan Ya Printed Circuit Board (of which 1 can't be ignored!) 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.