HORIBA, Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

HORIBA, Ltd. (TSE:6856) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 5.5% to hit JP¥180b. HORIBA also reported a statutory profit of JP¥519, which was an impressive 26% above what the analysts had forecast. 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.

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Taking into account the latest results, the most recent consensus for HORIBA from seven analysts is for revenues of JP¥382.0b in 2026. If met, it would imply an okay 4.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 17% to JP¥1,199. In the lead-up to this report, the analysts had been modelling revenues of JP¥378.3b and earnings per share (EPS) of JP¥1,187 in 2026. 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.

Check out our latest analysis for HORIBA

There were no changes to revenue or earnings estimates or the price target of JP¥29,571, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on HORIBA, with the most bullish analyst valuing it at JP¥35,000 and the most bearish at JP¥16,000 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.7% per year. So although HORIBA is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

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 HORIBA. Long-term earnings power is much more important than next year's profits. We have forecasts for HORIBA going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - HORIBA has 2 warning signs we think you should be aware of.

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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.