This week has been positive for ASE Technology Holding Co., Ltd. (TWSE:3711) shareholders. The company revealed its full-year results, and shares climbed 6.4% to NT$175. Overall, the results were solid, with revenues hitting NT$595 billion and earnings per share at NT$7.23, both matching analyst expectations. This indicates that ASE Technology is on track with its goals.
Investors use these reports to gauge company performance and check forecasts for the coming year. Recently, we looked at what analysts are predicting for ASE Technology after these results.
According to the latest estimates from ASE Technology’s 16 analysts, revenues are expected to rise to NT$667.2 billion in 2025. This marks a notable increase of 12% from the previous year. Additionally, earnings per share are forecasted to grow by 46%, reaching NT$10.90. Before the report, analysts predicted revenue of NT$663.5 billion and earnings per share of NT$10.73 for 2025. Thus, while analysts have adjusted their numbers slightly, overall expectations for the company remain stable.
Interestingly, the consensus price target has increased by 6.2% to NT$190, even though earnings forecasts stayed the same. This could mean that analysts see ASE Technology’s earnings as reliable enough to warrant a higher price estimate. Also, there’s some variation among analysts’ opinions, with the most optimistic setting a price target of NT$215 and the most conservative at NT$122. Despite these differences, the range of estimates isn’t wide enough to suggest drastic changes for shareholders.
When considering these projections, it’s important to note ASE Technology’s expected growth compared to its past performance and industry peers. The company anticipates a 12% yearly revenue growth until 2025, which is faster than its historical rate of 7.2% over the last five years. However, rival companies in the same sector are projected to grow by 16% annually, indicating that ASE might lag behind the industry average.
The Bottom Line
The takeaway here is that analyst sentiment remains steady. They believe that ASE Technology is continuing to meet their previous earnings forecasts. However, it’s worth noting that ASE’s projected revenue growth appears to be slower than that of the broader industry. That said, the revision in the price target suggests potential long-term value.
With all this in mind, it’s crucial not to rush to conclusions about ASE Technology. Long-term growth prospects matter more than just next year’s earnings.
Like any company, ASE Technology has its risks. We’ve identified 2 warning signs that investors should pay attention to.
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This article is a summary based on historical data and analyst predictions. It is not financial advice and does not constitute a recommendation to buy or sell any stock. Our aim is to provide long-term, data-driven analysis. Please note that this analysis may not include the latest price-sensitive company developments. Simply Wall St does not hold any positions in the stocks mentioned.
