It's been a sad week for Hirose Electric Co.,Ltd. (TSE:6806), who've watched their investment drop 11% to JP¥21,040 in the week since the company reported its interim result. It looks like the results were a bit of a negative overall. While revenues of JP¥128b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.1% to hit JP¥324 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Hirose ElectricLtd from 15 analysts is for revenues of JP¥251.3b in 2027. If met, it would imply a credible 5.9% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.8% to JP¥1,202. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥251.1b and earnings per share (EPS) of JP¥1,203 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Hirose ElectricLtd
The analysts reconfirmed their price target of JP¥32,793, 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. The most optimistic Hirose ElectricLtd analyst has a price target of JP¥39,000 per share, while the most pessimistic values it at JP¥24,500. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Hirose ElectricLtd's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 6.4% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. Hirose ElectricLtd is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Hirose ElectricLtd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hirose ElectricLtd going out to 2029, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Hirose ElectricLtd you should be aware of.
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