Compal Electronics (TWSE:2324) recently released its second quarter 2024 results, showcasing a mixed bag of financial performance. While revenue saw a slight decline of 2.7% from the same period in 2023, net income surged by an impressive 38%. The company’s profit margin also saw an uptick, reaching 1.2% compared to 0.9% in the second quarter of the previous year. Earnings per share (EPS) stood at NT$0.66, a significant improvement from NT$0.48 in 2Q 2023.
Key Financial Results
The revenue for the second quarter of 2024 was reported at NT$237.2 billion, reflecting a modest decrease from the same period in 2023. Despite the dip in revenue, Compal Electronics managed to boost its net income to NT$2.88 billion, marking a substantial increase of 38% year-over-year. The company’s profit margin also saw a positive trend, climbing to 1.2% from 0.9% in the second quarter of 2023.
Compal Electronics EPS Beats Expectations
While revenue aligned with analyst estimates, the standout performance came in the form of earnings per share (EPS) surpassing expectations by 1.5%. Looking ahead, the company is forecasted to achieve an average annual revenue growth of 4.5% over the next three years, a figure that falls short of the 20% growth forecast for the Tech industry in Taiwan.
Performance of the Taiwanese Tech Industry
In the broader context of the Taiwanese Tech industry, Compal Electronics has seen a 2.4% increase in its share value over the past week. This positive momentum reflects investor confidence in the company’s ability to navigate the challenges and opportunities within the sector.
Risk Analysis
Despite the encouraging financial results, it is essential to acknowledge the presence of investment risks. Compal Electronics has been flagged with 1 warning sign, underscoring the importance of conducting thorough due diligence before making investment decisions.
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In conclusion, Compal Electronics‘ second quarter 2024 results paint a nuanced picture of its financial performance. While revenue experienced a slight decline, the company managed to significantly boost its net income and EPS. As the company navigates the evolving landscape of the Taiwanese Tech industry, investors are advised to stay vigilant of potential risks and leverage innovative tools like the AI Stock Screener to make informed investment decisions.