Universal Electronics Inc. (NASDAQ:UEIC) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

In This Article:

  • Universal Electronics Inc.'s (NASDAQ:UEIC) share price jumped 33% to $11.09 after its third-quarter results, despite reporting statutory losses of $0.20 per share.
  • Analysts have revised their 2025 forecasts, now expecting revenues of $411.7m, a 7.8% improvement, but have reduced their earnings per share estimates to $0.44 from $0.89.
  • The consensus price target remains at $12.33, with analysts seemingly not expecting the lower earnings forecast to impact the stock price.
  • Universal Electronics is expected to grow faster in the future, with revenues forecast to display 6.2% annualized growth until the end of 2025, in line with the overall industry.
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The investors in Universal Electronics Inc.'s (NASDAQ:UEIC) will be rubbing their hands together with glee today, after the share price leapt 33% to US$11.09 in the week following its third-quarter results. Revenues were in line with expectations, at US$102m, while statutory losses ballooned to US$0.20 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Universal Electronics

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NasdaqGS:UEIC Earnings and Revenue Growth November 10th 2024

Taking into account the latest results, the consensus forecast from Universal Electronics' three analysts is for revenues of US$411.7m in 2025. This reflects a credible 7.8% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Universal Electronics forecast to report a statutory profit of US$0.44 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$411.3m and earnings per share (EPS) of US$0.89 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

The consensus price target held steady at US$12.33, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Universal Electronics at US$15.00 per share, while the most bearish prices it at US$11.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Universal Electronics is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.2% annualised growth until the end of 2025. If achieved, this would be a much better result than the 13% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.8% annually. So while Universal Electronics' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.