Chunghwa Telecom Co., Ltd. (TWSE:2412) Just Released Its Annual Results And Analysts Are Updating Their Estimates

The yearly results for Chunghwa Telecom Co., Ltd. (TWSE:2412) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of NT$230b and statutory earnings per share of NT$4.80. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Chunghwa Telecom

After the latest results, the four analysts covering Chunghwa Telecom are now predicting revenues of NT$234.6b in 2025. If met, this would reflect an okay 2.0% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be NT$4.87, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$231.8b and earnings per share (EPS) of NT$4.94 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of NT$122, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Chunghwa Telecom, with the most bullish analyst valuing it at NT$130 and the most bearish at NT$108 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Chunghwa Telecom'shistorical trends, as the 2.0% annualised revenue growth to the end of 2025 is roughly in line with the 2.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.8% per year. So it's pretty clear that Chunghwa Telecom is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at NT$122, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Chunghwa Telecom. Long-term earnings power is much more important than next year's profits. We have forecasts for Chunghwa Telecom going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Chunghwa Telecom 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.