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Shibaura Mechatronics Corporation Just Missed EPS By 83%: Here's What Analysts Think Will Happen Next
The analysts might have been a bit too bullish on Shibaura Mechatronics Corporation (TSE:6590), given that the company fell short of expectations when it released its half-year results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at JP¥43b, statutory earnings missed forecasts by an incredible 83%, coming in at just JP¥65.12 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 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 Shibaura Mechatronics from three analysts is for revenues of JP¥113.8b in 2027. If met, it would imply a sizeable 28% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 51% to JP¥234. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥108.8b and earnings per share (EPS) of JP¥231 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.
View our latest analysis for Shibaura Mechatronics
It may not be a surprise to see thatthe analysts have reconfirmed their price target of JP¥5,767, implying that the uplift in revenue is not expected to greatly contribute to Shibaura Mechatronics's valuation in the near term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Shibaura Mechatronics analyst has a price target of JP¥7,000 per share, while the most pessimistic values it at JP¥3,800. 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 Shibaura Mechatronics shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Shibaura Mechatronics' growth to accelerate, with the forecast 63% annualised growth to the end of 2027 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Shibaura Mechatronics 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, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.
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 forecasts for Shibaura Mechatronics going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Shibaura Mechatronics has 2 warning signs (and 1 which is a bit concerning) we think you should know about.
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