YASKAWA Electric Corporation (TSE:6506) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with JP¥139b revenue coming in 4.1% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥21.00 missed the mark badly, arriving some 53% below what was expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on YASKAWA Electric after the latest results.
Taking into account the latest results, the consensus forecast from YASKAWA Electric's 18 analysts is for revenues of JP¥597.5b in 2027. This reflects a modest 7.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 48% to JP¥193. Before this earnings report, the analysts had been forecasting revenues of JP¥597.3b and earnings per share (EPS) of JP¥197 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for YASKAWA Electric
The analysts reconfirmed their price target of JP¥6,906, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values YASKAWA Electric at JP¥9,000 per share, while the most bearish prices it at JP¥5,100. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that YASKAWA Electric's rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that YASKAWA Electric is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥6,906, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple YASKAWA Electric analysts - going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with YASKAWA Electric (including 1 which is significant) .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.