Faraday Technology Corporation (TWSE:3035) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year’s forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company’s business prospects.
After the upgrade, the seven analysts covering Faraday Technology are now predicting revenues of NT$21b in 2025. If met, this would reflect a huge 89% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 83% to NT$7.91. Previously, the analysts had been modelling revenues of NT$15b and earnings per share (EPS) of NT$7.90 in 2025. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven’t changed their view on earnings per share.
See our latest analysis for Faraday Technology
It may not be a surprise to see that the analysts have reconfirmed their price target of NT$274, implying that the uplift in sales is not expected to greatly contribute to Faraday Technology’s valuation in the near term.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Faraday Technology’s growth to accelerate, with the forecast 89% annualised growth to the end of 2025 ranking favourably alongside historical growth of 20% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it’s pretty clear that Faraday Technology is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion from this consensus update is that there’s been no major change in the business’ prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year’s forecasts, it might be time to take another look at Faraday Technology.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Faraday Technology going out to 2027, and you can see them free on our platform here..
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.