Nan Ya Printed Circuit Board Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that Nan Ya Printed Circuit Board Corporation (TWSE:8046) released its second-quarter result to the market. The early response was not positive, with shares down 9.3% to NT$142 in the past week. It looks like a pretty bad result, all things considered. Although revenues of NT$8.1b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 56% to hit NT$0.18 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Nan Ya Printed Circuit Board

Taking into account the latest results, Nan Ya Printed Circuit Board's nine analysts currently expect revenues in 2024 to be NT$34.6b, approximately in line with the last 12 months. Statutory earnings per share are forecast to plummet 36% to NT$1.86 in the same period. In the lead-up to this report, the analysts had been modelling revenues of NT$36.0b and earnings per share (EPS) of NT$3.24 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The consensus price target fell 12% to NT$170, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. 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$112. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nan Ya Printed Circuit Board's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.1% by the end of 2024. This indicates a significant reduction from annual growth of 9.2% 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 13% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Nan Ya Printed Circuit Board is expected to lag 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

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 Nan Ya Printed Circuit Board 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 Nan Ya Printed Circuit Board (1 shouldn't be ignored!) 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.