Shimadzu Corporation Just Missed EPS By 6.0%: Here's What Analysts Think Will Happen Next

Investors in Shimadzu Corporation (TSE:7701) had a good week, as its shares rose 5.4% to close at JP¥4,625 following the release of its half-yearly results. It looks like the results were a bit of a negative overall. While revenues of JP¥282b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.0% to hit JP¥97.82 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shimadzu after the latest results.

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Following the latest results, Shimadzu's eleven analysts are now forecasting revenues of JP¥620.4b in 2027. This would be an okay 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 4.9% to JP¥214 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥618.0b and earnings per share (EPS) of JP¥213 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.

See our latest analysis for Shimadzu

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,193. 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 Shimadzu analyst has a price target of JP¥6,500 per share, while the most pessimistic values it at JP¥4,000. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting Shimadzu's growth to accelerate, with the forecast 12% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.5% per annum 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Shimadzu is expected to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥5,193, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Shimadzu going out to 2029, and you can see them free on our platform here.

We also provide an overview of the Shimadzu Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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