Evergreen Marine Corporation (Taiwan) Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Evergreen Marine Corporation (Taiwan) Ltd. (TWSE:2603) had a good week, as its shares rose 4.4% to close at NT$228 following the release of its quarterly results. It looks like a credible result overall - although revenues of NT$153b were in line with what the analysts predicted, Evergreen Marine Corporation (Taiwan) surprised by delivering a statutory profit of NT$28.61 per share, a notable 13% 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 Evergreen Marine Corporation (Taiwan)

Taking into account the latest results, the eight analysts covering Evergreen Marine Corporation (Taiwan) provided consensus estimates of NT$391.4b revenue in 2025, which would reflect a measurable 6.2% decline over the past 12 months. Statutory earnings per share are expected to plummet 22% to NT$40.57 in the same period. Before this earnings report, the analysts had been forecasting revenues of NT$388.9b and earnings per share (EPS) of NT$39.19 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of NT$218, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Evergreen Marine Corporation (Taiwan), with the most bullish analyst valuing it at NT$320 and the most bearish at NT$136 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.0% by the end of 2025. This indicates a significant reduction from annual growth of 14% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 10% per year. The forecasts do look comparatively optimistic for Evergreen Marine Corporation (Taiwan), since they're expecting it to shrink slower than the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Evergreen Marine Corporation (Taiwan)'s earnings potential next year. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Evergreen Marine Corporation (Taiwan)'s revenue is expected to perform better than the wider industry. The consensus price target held steady at NT$218, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Evergreen Marine Corporation (Taiwan) going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Evergreen Marine Corporation (Taiwan) (1 can't be ignored!) that we have uncovered.

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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.