Voltronic Power Technology Corp. (TWSE:6409) shareholders will be smiling today after the analysts significantly increased their statutory forecasts for this year. Revenue forecasts for the year have been refreshed and the analysts are more optimistic about the company's sales pipeline.
Following the upgrade, the current consensus from Voltronic Power Technology's five analysts is for revenues of NT$25b in 2024, which would represent a significant 22% increase on sales over the past 12 months. Earnings per share are expected to grow 13% to NT$45.89. Prior to this latest update, the analysts had been forecasting revenues of NT$22b and earnings per share (EPS) of NT$43.95 in 2024. The latest forecasts are clearly more optimistic, with much improved revenue estimates and rising earnings per share.
Read our latest analysis for Voltronic Power Technology
TWSE:6409 Earnings and Sales Growth August 11, 2024
Despite these upward revisions, analysts have not made any significant changes to their target price of NT$1,852, suggesting that the higher forecasts are unlikely to have a long-term impact on the stock price.
Of course, another way to look at these forecasts is to place them in the context of the industry itself. From the latest estimates, we can see that Voltronic Power Technology's growth rate is expected to accelerate significantly, with projected annual revenue growth of 48% by the end of 2024, significantly faster than the historical growth rate of 12% per year over the past five years. Compare this to other companies in the same industry, which have forecast revenue growth of 15% per year. While the growth outlook is brighter than recent times, it's clear that analysts are expecting Voltronic Power Technology to grow faster than the industry as a whole.
Conclusion
The most important takeaway from this upward revision is that the analysts have increased their earnings per share forecasts for this year in anticipation of an improving business environment. The good news is that the analysts have also increased their revenue forecasts, and our data suggests that sales are expected to perform better than the overall market. Given that this year's forecasts have been significantly revised upwards, it may be time to take another look at Voltronic Power Technology.
Yet the long term trajectory of the business is far more important to shareholder value creation.At Simply Wall St, we have all of our analyst forecasts for Voltronic Power Technology out to 2026, and you can see them free on our platform.
Of course, seeing if a company's management has significant money invested in a stock can be just as useful as knowing whether analysts have been revising their estimates upwards, so you might also want to search for this free list of stocks with high insider ownership.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.
