Catcher Technology Co., Ltd. (TWSE:2474) has just released its latest quarterly financial results, and things are looking bullish. Catcher Technology delivered better-than-expected earnings, with revenue coming in at a better-than-expected NT$4.7b, and statutory earnings per share beating the analysts' forecasts by 12%. This is an important time for investors, as you can track a company's performance in its report, see what experts are predicting for next year, and see if there have been any changes to expectations for the business. We've gathered the latest statutory forecasts to see whether the analysts have changed their earnings model following these results.
Check out our latest analysis for Catcher Technology
TWSE:2474 Earnings and Sales Growth August 11, 2024
Taking into account the latest financial results, the consensus forecast from Catcher Technology's five analysts is for revenues of NT$19b in 2024. This reflects a 19% improvement in revenue compared to the last 12 months. Earnings per share are expected to increase 12% to NT$19.43. However, prior to the latest earnings release, the analysts were forecasting revenues of NT$19b and earnings per share (EPS) of NT$19.59 in 2024. The consensus analysts do not appear to have seen anything in this earnings release that would change their view on the business, as there have been no major changes to their forecasts.
It is not surprising then that the consensus price target remains largely unchanged at NT$211. However, it would be unwise to fixate on a single price target, as the consensus price target is effectively the average of analysts' price targets. As a result, some investors like to look at the range of estimates to see if there are any divergences in opinion on the company's valuation. There are mixed perceptions on Catcher Technology, with the most bullish analyst valuing it at NT$255 and the most bearish at NT$175. As we can see, analysts are not unanimous on the stock's future, but the range of estimates is still fairly narrow, which may suggest that the outcome is not entirely unpredictable.
Looking at the bigger picture, one way to understand these forecasts is to see how they compare to both past performance and industry growth forecasts. For example, Catcher Technology's growth rate is expected to accelerate significantly, with revenue predicted to grow at an annualized rate of 42% by the end of 2024. This is a significant increase over the 36% annual decline over the past five years. In contrast, our data suggests that other companies in the industry (those with analyst coverage) are forecast to grow their revenue at 20% per year. Not only are Catcher Technology's revenues expected to improve, but it appears that analysts are expecting the company to grow faster than the industry as a whole.
Conclusion
The most obvious conclusion is that there hasn't been a major change to the outlook for the business recently, with the analysts keeping their revenue forecasts unchanged from their previous estimates. Fortunately, the analysts have also reaffirmed their revenue figures, suggesting they are in line with expectations. Furthermore, our data suggests that revenue is expected to grow at a faster pace than the wider industry. The consensus price target remains stable at NT$211, with the latest estimates not enough to impact the target price.
With that in mind, we believe the long-term trajectory of the business is a much more important consideration for investors. We have forecasts for Catcher Technology out to 2026, and you can see them free of charge on our platform here.
Still, remember that risks may exist – for example, Catcher Technology has identified 2 warning signs (1 which is potentially serious) that you should be aware of.
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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.
