Chenbro Micom Co., Ltd. Just Recorded A 5.2% EPS Beat: Here's What Analysts Are Forecasting Next

A week ago, Chenbro Micom Co., Ltd. (TWSE:8210) came out with a strong set of full-year numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 3.8% to hit NT$11b. Statutory earnings per share (EPS) came in at NT$9.03, some 5.2% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Chenbro Micom

Taking into account the latest results, the most recent consensus for Chenbro Micom from three analysts is for revenues of NT$13.7b in 2024. If met, it would imply a substantial 22% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 45% to NT$13.07. Before this earnings report, the analysts had been forecasting revenues of NT$14.8b and earnings per share (EPS) of NT$14.61 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The analysts made no major changes to their price target of NT$301, suggesting the downgrades are not expected to have a long-term impact on Chenbro Micom's valuation. 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. Currently, the most bullish analyst values Chenbro Micom at NT$377 per share, while the most bearish prices it at NT$262. 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 Chenbro Micom shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Chenbro Micom's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 11% 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Chenbro Micom is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Chenbro Micom. They also downgraded Chenbro Micom's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Chenbro Micom going out to 2025, and you can see them free on our platform here..

Even so, be aware that Chenbro Micom is showing 2 warning signs in our investment analysis , 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.