BenQ Materials Corporation Just Missed EPS By 39%: Here's What Analysts Think Will Happen Next

The third-quarter results for BenQ Materials Corporation (TWSE:8215) were released last week, making it a good time to revisit its performance. It looks like a pretty bad result, all things considered. Although revenues of NT$4.5b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 39% to hit NT$0.14 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for BenQ Materials

Taking into account the latest results, the current consensus from BenQ Materials' three analysts is for revenues of NT$19.8b in 2025. This would reflect a decent 13% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 245% to NT$2.03. In the lead-up to this report, the analysts had been modelling revenues of NT$19.9b and earnings per share (EPS) of NT$2.40 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at NT$35.00, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic BenQ Materials analyst has a price target of NT$36.00 per share, while the most pessimistic values it at NT$34.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BenQ Materials' past performance and to peers in the same industry. The analysts are definitely expecting BenQ Materials' growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, BenQ Materials is expected to grow slower than 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that BenQ Materials' revenue is expected to perform worse than the wider industry. The consensus price target held steady at NT$35.00, 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 estimates - from multiple BenQ Materials analysts - going out to 2025, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for BenQ Materials (2 are a bit concerning!) 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.