King Slide Works Co., Ltd. (TWSE:2059) Investors will be pleased as the company has delivered some strong numbers with its latest results. Overall, it was a positive result, with revenue beating expectations by 4.8% to reach NT$2.5 billion. King Slide Works also reported statutory profit of NT$15.29, which was an impressive 34% above analysts’ forecasts. This is an important time for investors as they can track a company’s performance in its report, look at what experts are predicting for next year, and see if expectations for the company have changed. We thought readers would find it interesting to see the latest analysts’ (statutory) forecasts for next year after the earnings release.
Check out our latest analysis for King Slide Works
Taking into account the latest results, the current consensus among King Slide Works’ eight analysts is for revenue of NT$9.87 billion in 2024. This would represent a significant 27% increase in revenue over the past 12 months. Statutory earnings per share are expected to increase 24% to NT$57.08. Prior to this earnings report, analysts had forecast revenue of NT$9.43 billion and earnings per share (EPS) of NT$52.10 in 2024. So, given the increase in revenue and earnings per share forecasts for next year, there seems to have been a moderate improvement in sentiment following the latest results.
Although analysts have revised their earnings estimates upward, there was no change in the consensus price target of NT$1,527. This suggests that the forecast performance does not have a long-term impact on the company’s valuation. However, this is not the only conclusion we can draw from this data, as some investors also like to consider the range of estimates when evaluating analysts’ price targets. The most optimistic analyst for King Slide Works has a price target of NT$1,800 per share, while the most pessimistic puts it at NT$1,129. As you can see, analysts do not all agree on the stock’s future, but the range of estimates is still relatively narrow, which could suggest that the outcome is not completely unpredictable.
Now, looking at the bigger picture, one of the ways we can understand these forecasts is by comparing them to past performance and industry growth estimates. The analysts are definitely expecting King Slide Works’ growth to accelerate, with the forecast annual growth of 62% through the end of 2024 comparing well to the historical growth of 9.6% per year over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to grow their revenues at a rate of 19% per year. Factoring in the forecast revenue acceleration, it’s pretty clear that King Slide Works is expected to grow at a much faster rate than its industry.
The conclusion
The most important thing to note here is that analysts have upgraded their earnings per share estimates, suggesting that optimism towards King Slide Works has increased significantly following these results. Encouragingly, they have also upgraded their revenue estimates and are forecasting that the company will grow faster than the wider industry. The consensus price target hasn’t really changed, suggesting that the company’s intrinsic value hasn’t changed much with the latest estimates.
Continuing with this thought, we believe the company’s long-term prospects are much more relevant than next year’s earnings. We have forecasts for King Slide Works out to 2026, which you can see for free on our platform here.
However, one should always think about the risks. A typical example: We have 1 warning sign for King Slide Works You should be aware.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
