It's been a good week for Will Semiconductor Co., Ltd. (SHSE:603501) shareholders, because the company has just released its latest first-quarter results, and the shares gained 8.9% to CN¥102. Revenues came in 6.6% below expectations, at CN¥5.6b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.46 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Will Semiconductor's 23 analysts is for revenues of CN¥26.3b in 2024. This would reflect a decent 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 236% to CN¥2.57. Before this earnings report, the analysts had been forecasting revenues of CN¥26.7b and earnings per share (EPS) of CN¥2.53 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥127. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Will Semiconductor at CN¥165 per share, while the most bearish prices it at CN¥110. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Will Semiconductor's growth to accelerate, with the forecast 25% annualised growth to the end of 2024 ranking favourably alongside historical growth of 9.4% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 23% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Will Semiconductor is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CN¥127, 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 Will Semiconductor going out to 2026, and you can see them free on our platform here.
It might also be worth considering whether Will Semiconductor's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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