Is ASX's Q1 2024 EPS forecast a buying signal?

**The Q1 2024 EPS forecast for ASX is not a clear buying signal.** Here's why: 1. **Analyst Estimates and Actual Performance**: The consensus EPS estimate for Q1 2024 was $0.09, which represented a 12.5% year-over-year increase. However, the actual EPS reported was 8.2 cents, which was below the analyst estimate of 9 cents. This discrepancy suggests that while the stock may have been expected to perform well, the actual performance was underwhelming. 2. **Revenue Estimates and Actual Performance**: The consensus revenue estimate for Q1 2024 was $4.06 billion, which represented a significant year-over-year decline of 96.9%. However, the actual revenue reported was $4.24 billion, which was slightly above the analyst estimate. Despite this, the company missed revenue estimates by 3.79%. This indicates that while the company's revenue was better than expected, it was still declining significantly, which could be a concern for investors. 3. **Market Reaction and Stock Performance**: Following the earnings release, the stock experienced a decline, which may indicate that the market had concerns about the company's performance or future prospects. The stock also broke through an upward trend channel, which could be a bearish signal. 4. **Long-Term Outlook**: Despite the short-term concerns, the company has a positive long-term outlook, with expectations of growth in leading-edge advanced packaging and testing revenues for 2025. This suggests that while the current quarter's performance may not be indicative of future performance, there is potential for the stock to recover or grow in the future. In conclusion, the Q1 2024 EPS forecast for ASX does not provide a strong buying signal. While there were some positive aspects to the earnings report, such as the expectation of growth in leading-edge advanced packaging and testing revenues for 2025, the actual performance in Q1 2024 fell short of expectations in terms of EPS and revenue. Additionally, the market's reaction to the earnings release suggests that there may be underlying concerns about the company's current performance and future prospects. Investors should consider these factors along with the company's long-term growth potential before making investment decisions.