SK-Electronics CO.,LTD. (TSE:6677) Just Reported And Analysts Have Been Cutting Their Estimates
SK-Electronics CO.,LTD. (TSE:6677) just released its latest full-year report and things are not looking great. SK-ElectronicsLTD missed analyst forecasts, with revenues of JP¥28b and statutory earnings per share (EPS) of JP¥295, falling short by 2.2% and 4.8% respectively. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the dual analysts covering SK-ElectronicsLTD are now predicting revenues of JP¥28.7b in 2027. If met, this would reflect a credible 3.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to fall 17% to JP¥246 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥31.0b and earnings per share (EPS) of JP¥298 in 2027. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
View our latest analysis for SK-ElectronicsLTD
The consensus price target fell 13% to JP¥3,500, with the weaker earnings outlook clearly leading valuation estimates.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that SK-ElectronicsLTD's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 3.1% growth on an annualised basis. This is compared to a historical growth rate of 5.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than SK-ElectronicsLTD.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 analyst estimates for SK-ElectronicsLTD going out as far as 2029, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for SK-ElectronicsLTD (1 shouldn't be ignored!) that you need to take into consideration.
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