AUO - AU Optronics - expected to grow by 20% over the next 3 – 5 years

AU Optronics Corp. (AUO) recently announced March revenue results, noting that consolidated revenue grew 59% on a year-over-year basis. AU Optronics is scheduled to report first-quarter results on April 22, 2008. Wall Street earnings estimates of 48 cents per share for the first quarter are higher than last month’s 46 cents. The most accurate forecast is even more bullish at 50 cents.

Full Analysis

AU Optronics is Taiwan's largest and a worldwide top 3 manufacturer of thin film transistor liquid crystal display panels (TFT-LCD). The company is able to provide customers a full range of panel sizes and comprehensive applications, offering TFT-LCD panels in sizes ranging from 1.5 inches to greater than 65 inches.

AUO has major competitive advantages with its comprehensive product lines, allowing for maximum flexibility in producing TFT-LCD panels. After its merger with Quanta Display Inc. in October 2006, AUO is able to leverage the core competency advantages of both sides to not only increase production capacity but also better seize ever-shifting market opportunities.

Growth

The company recently announced March revenue results, noting that consolidated revenue grew 59% on a year-over-year basis.

AU Optronics is scheduled to report first-quarter results on April 22, 2008.

Wall Street earnings estimates of 48 cents per share for the first quarter are higher than last month’s 46 cents. The most accurate forecast is even more bullish at 50 cents. AUO’s earnings per share are expected to grow by 20% over the next 3 – 5 years, while the industry average forecast is a lower 15%.

The company posted fourth-quarter and full-year result in late January, sporting quarterly earnings per share of $1.30 in U.S. currency, which sky rocketed past the year-ago six cents per share and exceeded the consensus estimate by 38%.

AUO stated that its large-sized panel shipments in 2007 grew 65.9% year-over-year to 80.9 million units, and the company therefore was ranked No.1 in terms of worldwide large-area TFT-LCD shipment units. AUO added that the shipment of small- to medium- sized panel for consumer product applications posted a remarkable 80.7% year-over-year increase to 143.1 million units.

AU Optronics’ return on equity (ROE) of 27% sits high above the industry average of 7%. The company’s net profit margin of 14% also boasts a comfortable lead over the industry’s average of 3.2%.

Income

The company’s dividend yield of 0.1% is a competitive one within its industry as the computer peripherals space is not known for encompassing many dividend paying companies.

Content Courtesy: Zacks Investment Research

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