Visco Vision Inc. narrowly missed earnings forecast – but analysts have updated their models

It was a mediocre week for ViscoVision Inc. (TWSE:6782) shareholders, with the stock falling 14% to NT$209 in the week since it announced its latest second-quarter results. Revenue of NT$905 million beat estimates by 4.0%, although statutory earnings per share fell well short, coming in 21% below expectations at NT$2.29 per share. The analysts typically update their forecasts with each earnings report, and we can use their estimates to judge whether their opinion of the company has changed or if there are any new concerns to be aware of. With that in mind, we've compiled the latest statutory forecasts to see what analysts expect for next year.

Check out our latest analysis for Visco Vision

Taking into account the latest results, the current consensus among Visco Vision's five analysts is for revenue of NT$3.46 billion in 2024. This would represent a significant 13% increase on sales over the past 12 months. Statutory earnings per share are expected to increase 49% to NT$12.26. Prior to this report, analysts had forecast revenue of NT$3.56 billion and earnings per share (EPS) of NT$11.51 in 2024. If anything, analysts overall seem to have become a bit more optimistic; while they have lowered their revenue forecasts, EPS forecasts have increased and, ultimately, profit is more important.

The consensus has made no major changes to the NT$324 price target, suggesting that the forecast improvement in earnings should offset the decline in sales next year. However, that's not the only conclusion we can draw from this data, as some investors also like to consider the range of estimates when evaluating analysts' price targets. The most optimistic Visco Vision analyst has a price target of NT$398 per share, while the most pessimistic puts it at NT$280. ​​Analysts definitely have different views on the business, but the range of estimates is not wide enough, in our view, to suggest that Visco Vision shareholders could expect extreme results.

Of course, one can also look at these forecasts in the context of the industry itself. Analysts definitely expect Visco Vision's growth to accelerate. The forecasted annual growth of 28% until the end of 2024 compares favorably to the historical growth of 14% per year over the past three years. Compare this to other companies in the same industry, which are forecast to grow revenues by 14% per year. Taking into account the forecast revenue acceleration, it is quite clear that Visco Vision is expected to grow much faster than the industry itself.

The conclusion

The key takeaway for us is the consensus earnings per share upgrade, suggesting a significant improvement in sentiment around Visco Vision's earnings potential next year. They also downgraded revenue estimates for Visco Vision, but industry data suggests the company is expected to grow faster than the wider industry. Still, earnings are more important to the company's intrinsic value. There was no real change in the consensus price target, suggesting the company's intrinsic value hasn't changed much with the latest estimates.

However, the long-term development of company earnings is much more important than the next year. We have forecasts for Visco Vision up to 2026, which you can view here for free on our platform.

However, one should always think about the risks. A typical example: We have 1 warning sign for Visco Vision You should be aware.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.