--- title: "Yageo fell 16 percent in five sessions despite record revenue; October 29 tests EPS of TWD 5.27" description: "Yageo slid 16 percent in five sessions while posting record quarterly revenue, and a Taiwanese disc maker that bought TWD 360 million of its stock in September sold TWD 464 million into the slide. The October 29 report turns on EPS of TWD 5.27, not revenue." publisher: "The Inference" section: "Chips" published: 2026-10-20T21:38:26.875Z modified: 2026-10-20T21:38:26.875Z canonical: https://theinference.org/article/yageo-fell-16-percent-in-five-sessions-despite-record-revenue-october-29-tests-eps-of-twd-5-27 language: en keywords: "Markets, Passive Components, Taiwan, MLCC, Earnings" --- # Yageo fell 16 percent in five sessions despite record revenue; October 29 tests EPS of TWD 5.27 > Yageo slid 16 percent in five sessions while posting record quarterly revenue, and a Taiwanese disc maker that bought TWD 360 million of its stock in September sold TWD 464 million into the slide. The October 29 report turns on EPS of TWD 5.27, not revenue. ## Two identical drops into a record quarter Yageo, the Taiwanese maker of capacitors and resistors, [closed at TWD 534.00 on October 19](https://www.ad-hoc-news.de/boerse/news/corporate-news/yageo-stock-falls-5-82-percent-ahead-of-october-29-results/70360228), down 5.82 percent, its second fall of exactly that size in five sessions [1][8]. The five-day move was minus 16.04 percent, leaving the stock 56 percent below its 52-week high of TWD 1,220 [1][2]. The same stretch delivered the strongest quarter in the company's history: revenue of TWD 49.5 billion for July through September, up 49.7 percent year on year, with September the seventh straight monthly record [1]. ## The bar is TWD 5.27 The report due October 29 faces a bar the revenue has already cleared [1][3]. Consensus wants TWD 48.29 billion of quarterly sales; the quarter delivered 49.5 billion, about 2.5 percent more [1][3]. Profit is the open question. [The market expects TWD 5.27 of earnings per share](https://www.ad-hoc-news.de/boerse/news/corporate-news/yageo-meldete-46-10-prozent-mehr-umsatz-cathay-sieht-die-yageo-aktie-bei-700-00-twd/70328592), roughly 15 percent above the TWD 4.59 of the second quarter, when gross margin ran 38.5 percent, operating margin 26.4 percent and net income climbed 88.5 percent to TWD 9,418 million [1][3]. Revenue says what shipped; the margin says who got paid. ## A September buyer sold into the slide Into that slide came a filing. CMC Magnetics, a separately listed Taiwanese optical-disc maker with TWD 1.88 billion of quarterly revenue, bought TWD 360 million of Yageo shares on September 16, then [disclosed a TWD 464 million disposal](https://www.marketscreener.com/news/cmc-magnetics-sheds-stake-in-yageo-for-nt-464-million-ce785dd2dd8af623) on October 14 [2][4][5][6]. Nothing in the record makes CMC part of the Yageo group; it is an outside holder, and a serial one, having put TWD 612 million into two other stakes on September 22 while selling TWD 357 million of Dynapack shares the same day [6][7]. The sell side has not moved: 15 analysts average a TWD 1,015 target, Cathay Securities holds TWD 700, and [Morgan Stanley cut to TWD 1,465 in July](https://www.ad-hoc-news.de/boerse/news/corporate-news/yageo-reports-record-september-revenue-morgan-stanley-cuts-target-for-yageo-stock/70265319) [2][3][9]. The stock still carries 40.3 times earnings and is up 131 percent this year [2][8]. *Chart: **Every published Yageo target sits above TWD 700; the stock closed at 534** Bar chart comparing Yageo's October 19 closing price of TWD 534 with five published analyst targets or fair values, all of which sit far above the price.* *Closing price and published targets or fair values, in TWD. Cathay Securities target of September 21; Simply Wall St fair value of October 1; MarketScreener 15-analyst average of October 19; Citi of September 9; Morgan Stanley of July 23, cut from 1,515. [1][2][3][8][9]* ## The 2018 scar against a booked-out 2027 The squeeze camp counts a real shortage: one AI rack holds 15,000 to 25,000 multilayer ceramic capacitors, Samsung Electro-Mechanics lifted prices 30 percent and is [booked into 2027](https://theinference.org/article/yageo-posts-a-record-quarter-and-murata-s-orders-jump-56-yet-both-stocks-sit-40-below-highs), and Murata, the largest capacitor maker, saw June-quarter orders jump 56.3 percent [10]. The cycle camp answers with Murata's own president calling orders "a bit overheated", Shenzhen spot prices down two-thirds from their peak, and 2018, when a record year rolled into a down 2019 [10]. Rate worry after hot US inflation has since repriced chip capex across the board [11]. ## What October 29 settles Clear TWD 5.27 with margin intact and the squeeze camp owns the tape; miss it, and the market has already drawn the 2018 chart [10]. Two readings decide: Yageo's earnings per share on October 29, and Murata's July-September order book on October 30 [1][10]. ## Takeaway October 29 settles a fight between a squeeze camp pointing to AI-rack MLCC counts and booked-out 2027 capacity, and a cycle camp pointing to 2018: the market wants EPS of TWD 5.27 with margin intact, and every published target still sits above the TWD 534 close. ## Sources 1. [AD HOC NEWS, "Yageo stock falls 5.82 percent ahead of October 29 results", 19 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/yageo-stock-falls-5-82-percent-ahead-of-october-29-results/70360228) 2. [MarketScreener, "CMC Magnetics Sheds Stake in Yageo for NT$464 Million", 14 October 2026 (with Yageo end-of-day quote and consensus data as of 19 October 2026)](https://www.marketscreener.com/news/cmc-magnetics-sheds-stake-in-yageo-for-nt-464-million-ce785dd2dd8af623) 3. [AD HOC NEWS, "Yageo meldete 46,10 Prozent mehr Umsatz: Cathay sieht die Yageo-Aktie bei 700,00 TWD", 16 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/yageo-meldete-46-10-prozent-mehr-umsatz-cathay-sieht-die-yageo-aktie-bei-700-00-twd/70328592) 4. [AD HOC NEWS, "CMC Magnetics kauft Yageo-Anteile und investiert 360 Millionen TWD in die Yageo-Aktie", 15 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/cmc-magnetics-kauft-yageo-anteile-und-investiert-360-millionen-twd-in-die-yageo-aktie/70312330) 5. [MarketScreener España, "CMC Magnetics se desprende de una participación en Yageo por 464 millones TWD", 14 October 2026](https://es.marketscreener.com/noticias/cmc-magnetics-se-desprende-de-una-participaci-n-en-yageo-por-464-millones-twd-ce785dd2dd8af623) 6. [AD HOC NEWS, "CMC Magnetics buys TWD 612 million stakes for CMC Magnetics stock context", 20 October 2026](https://www.ad-hoc-news.de/boerse/news/nebenwerte/cmc-magnetics-buys-twd-612-million-stakes-for-cmc-magnetics-stock-context/70367426) 7. [Wikipedia, "CMC Magnetics" (Taiwanese optical disc manufacturer, TWSE: 2323), retrieved 20 October 2026](https://en.wikipedia.org/wiki/CMC_Magnetics) 8. [AD HOC NEWS, "Analysts cut Yageo stock fair value to TWD 1,009.33", 14 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/analysts-cut-yageo-stock-fair-value-to-twd-1-009-33/70314698) 9. [AD HOC NEWS, "Yageo reports record September revenue: Morgan Stanley cuts target for Yageo stock", 8 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/yageo-reports-record-september-revenue-morgan-stanley-cuts-target-for-yageo-stock/70265319) 10. [The Inference, "Yageo posts a record quarter and Murata's orders jump 56%, yet both stocks sit 40% below highs", 12 October 2026](https://theinference.org/article/yageo-posts-a-record-quarter-and-murata-s-orders-jump-56-yet-both-stocks-sit-40-below-highs) 11. [AD HOC NEWS, "Infineon's 800-Volt Server Push Meets a Rate-Sensitive Market", 20 October 2026](https://www.ad-hoc-news.de/boerse/news/unternehmensnachrichten/infineon-s-800-volt-server-push-meets-a-rate-sensitive-market/70359894) --- Yageo fell 16 percent in five sessions despite record revenue; October 29 tests EPS of TWD 5.27 — The Inference. Canonical: https://theinference.org/article/yageo-fell-16-percent-in-five-sessions-despite-record-revenue-october-29-tests-eps-of-twd-5-27