Taiwan Mobile Co., Ltd. Just Recorded A 11% EPS Beat: Here's What Analysts Are Forecasting Next

Taiwan Mobile Co., Ltd. (TWSE:3045) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a credible result overall - although revenues of NT$183b were in line with what the analysts predicted, Taiwan Mobile surprised by delivering a statutory profit of NT$4.33 per share, a notable 11% above expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Taiwan Mobile

Taking into account the latest results, the consensus forecast from Taiwan Mobile's five analysts is for revenues of NT$207.1b in 2024. This reflects a decent 13% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be NT$4.11, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$205.4b and earnings per share (EPS) of NT$3.88 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at NT$108, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Taiwan Mobile, with the most bullish analyst valuing it at NT$124 and the most bearish at NT$100.00 per share. This is a very narrow spread of estimates, implying either that Taiwan Mobile is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's clear from the latest estimates that Taiwan Mobile's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Taiwan Mobile is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Taiwan Mobile following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at NT$108, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Taiwan Mobile going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Taiwan Mobile that you need to take into consideration.

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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.