Revenue Beat: Hirose Electric Co.,Ltd. Beat Analyst Estimates By 5.3%

Explore Hirose ElectricLtd's Fair Values from the Community and select yours

Hirose Electric Co.,Ltd. (TSE:6806) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a pretty mixed result, with revenues beating expectations to hit JP¥49b. Statutory earnings fell 2.6% short of analyst forecasts, reaching JP¥214 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the consensus forecast from Hirose ElectricLtd's 14 analysts is for revenues of JP¥197.6b in 2026. This reflects an okay 2.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥934, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥196.0b and earnings per share (EPS) of JP¥934 in 2026. 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

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥21,579. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Hirose ElectricLtd analyst has a price target of JP¥26,100 per share, while the most pessimistic values it at JP¥17,500. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Hirose ElectricLtd shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Hirose ElectricLtd's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.8% growth on an annualised basis. This is compared to a historical growth rate of 7.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Hirose ElectricLtd.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hirose ElectricLtd's revenue is expected to perform worse than 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Hirose ElectricLtd going out to 2028, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.