Hon Hai Precision Industry Co., Ltd. (TWSE:2317) has just released its second quarter results and analysts are updating their estimates

It was a good week for Hon Hai Precision Industry Co., Ltd. (TWSE:2317) shareholders as the company just released its latest second-quarter results and shares rose 9.2% to NT$184. The results were roughly in line with estimates, with revenue of NT$1.6 trillion and statutory earnings per share of NT$2.50. Earnings results are an important time for investors as they can track a company's performance, look at what analysts are forecasting for next year, and see if sentiment toward the company has changed. We've compiled the most up-to-date statutory forecasts to see if analysts have changed their earnings models following these results.

Check out our latest analysis for Hon Hai Precision Industry

Following the latest results, the 17 analysts covering Hon Hai Precision Industry are now forecasting revenues of NT$6.76 trillion in 2024. If this forecast is met, it would be a credible 7.9% increase in sales compared to the past 12 months. Earnings per share are expected to increase by 3.8% to NT$11.49. Prior to this earnings report, analysts had been forecasting revenues of NT$6.72 trillion and earnings per share (EPS) of NT$11.33 in 2024. So, it's pretty clear that even though analysts have updated their estimates, there hasn't been much change in expectations for the company following the latest results.

The analysts reiterated their price target of NT$241, which shows that the company is doing well and in line with expectations. It might also be instructive to look at the range of analyst estimates to assess how much the outliers' opinions deviate from the mean. Currently, the most optimistic analyst values ​​Hon Hai Precision Industry at NT$270 per share, while the most pessimistic analyst expects NT$178. These price targets show that analysts do have different views on the company, but the estimates do not vary so much as to suggest that some are betting on great success or utter failure.

Now, looking at the bigger picture, one of the ways we can understand these projections is to evaluate them against past performance and industry growth estimates. The analysts are definitely expecting Hon Hai Precision Industry's growth to accelerate. The forecast annual growth of 16% through the end of 2024 compares favorably to the historical growth of 4.5% per year over the past five years. Compare this to other companies in the same industry which are forecast to grow their revenues at 14% per year. Hon Hai Precision Industry is expected to grow at about the same pace as its industry, so it's not clear if we can draw any conclusions from its growth relative to its competitors.

The conclusion

Most importantly, there were no major sentiment swings. Analysts confirmed that the company is performing in line with their previous earnings per share estimates. Fortunately, there were no real changes in revenue forecasts. The company is still expected to grow in line with the wider industry. The consensus price target remained stable at NT$241, with recent estimates not enough to have an impact on price targets.

With that in mind, we still believe the long-term trajectory of the company is much more important to investors. At Simply Wall St, we have a full range of analyst estimates for Hon Hai Precision Industry out to 2026, and you can see them free on our platform here.

You still have to consider risks, for example – Hon Hai Precision Industry has 1 warning sign In our opinion, you should be aware of this.

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This Simply Wall St article is of a general nature. We comment solely on 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.