Nan Ya Printed Circuit Board Corporation Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

As you might know, Nan Ya Printed Circuit Board Corporation (TWSE:8046) recently reported its quarterly numbers. It was a pretty negative result overall, with revenues of NT$7.1b missing analyst predictions by 9.4%. Worse, the business reported a statutory loss of NT$0.24 per share, a substantial decline on analyst expectations of a profit. 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.

See our latest analysis for Nan Ya Printed Circuit Board

Following last week's earnings report, Nan Ya Printed Circuit Board's nine analysts are forecasting 2024 revenues to be NT$36.9b, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 17% to NT$4.31 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$41.5b and earnings per share (EPS) of NT$7.67 in 2024. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a pretty serious reduction to earnings per share numbers as well.

The analysts made no major changes to their price target of NT$196, suggesting the downgrades are not expected to have a long-term impact on Nan Ya Printed Circuit Board's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Nan Ya Printed Circuit Board, with the most bullish analyst valuing it at NT$315 and the most bearish at NT$135 per share. 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.

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. We would highlight that Nan Ya Printed Circuit Board's revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. Factoring in the forecast slowdown in growth, it seems obvious that Nan Ya Printed Circuit Board is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nan Ya Printed Circuit Board. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at NT$196, with the latest estimates not enough to have an impact on their price targets.

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 makes us a bit uncomfortable!) 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.