Adrian J
TLDR:
- Taiwan Surface Mounting Technology (TWSE:6278) reported lower revenues and earnings for FY 2023.
- Revenue decreased by 32% and net income decreased by 38% compared to FY 2022.
In the full year 2023 earnings report for Taiwan Surface Mounting Technology, the company revealed key financial results that showed a decline in performance. Revenue for the year was noted at NT$46.5b, representing a 32% decrease from the previous fiscal year. Net income also saw a significant drop, coming in at NT$2.51b, down 38% from FY 2022. The profit margin for the company slipped to 5.4%, down from 5.9% in the prior year, mainly due to the lower revenue figures. Earnings per share (EPS) also saw a decline, with NT$8.57 reported compared to NT$13.82 in FY 2022.
Analysts had expected higher figures from Taiwan Surface Mounting Technology, with both revenue and EPS missing estimates by 9.8% and 16% respectively. Looking ahead, the company forecasts a 16% average annual revenue growth over the next two years, outpacing the 11% growth forecast for the Electronic industry in Taiwan.
Despite the disappointing results, the company’s shares saw a 14% increase in value from just a week ago. Risk analysis highlights one warning sign for investors to consider. For a comprehensive analysis on the valuation and potential of Taiwan Surface Mounting Technology, investors are encouraged to explore further research provided by Simply Wall St.
Taiwan Surface Mounting Technology Corp. continues to provide LCD surface-mount technology production solutions globally. With an excellent balance sheet, growth potential, and dividends, the company remains a key player in the industry.
