Nan Ya Printed Circuit Board Corporation (TWSE:8046) Analysts Are Reducing Their Forecasts For This Year

One thing we could say about the analysts on Nan Ya Printed Circuit Board Corporation (TWSE:8046) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the latest downgrade, the seven analysts covering Nan Ya Printed Circuit Board provided consensus estimates of NT$41b revenue in 2024, which would reflect a small 4.1% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to crater 38% to NT$5.55 in the same period. Previously, the analysts had been modelling revenues of NT$45b and earnings per share (EPS) of NT$9.71 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Nan Ya Printed Circuit Board

Analysts made no major changes to their price target of NT$212, suggesting the downgrades are not expected to have a long-term impact on Nan Ya Printed Circuit Board's valuation.

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 sales are expected to reverse, with a forecast 4.1% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 15% 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 11% annually for the foreseeable future. It's pretty clear that Nan Ya Printed Circuit Board's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Nan Ya Printed Circuit Board. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Nan Ya Printed Circuit Board's revenues are expected to grow slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Nan Ya Printed Circuit Board.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Nan Ya Printed Circuit Board going out to 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.