Japan Aviation Electronics Industry, Limited Just Missed Earnings - But Analysts Have Updated Their Models
Last week, you might have seen that Japan Aviation Electronics Industry, Limited (TSE:6807) released its first-quarter result to the market. The early response was not positive, with shares down 3.4% to JP¥2,378 in the past week. Revenue of JP¥58b surpassed estimates by 2.6%, although statutory earnings per share missed badly, coming in 67% below expectations at JP¥4.95 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following last week's earnings report, Japan Aviation Electronics Industry's eight analysts are forecasting 2027 revenues to be JP¥237.7b, approximately in line with the last 12 months. Per-share earnings are expected to expand 19% to JP¥115. Before this earnings report, the analysts had been forecasting revenues of JP¥237.6b and earnings per share (EPS) of JP¥116 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.
Check out our latest analysis for Japan Aviation Electronics Industry
The analysts reconfirmed their price target of JP¥2,326, 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. Currently, the most bullish analyst values Japan Aviation Electronics Industry at JP¥2,750 per share, while the most bearish prices it at JP¥2,000. 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. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2027. That would be a definite improvement, given that the past five years have seen revenue shrink 0.3% annually. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.2% annually. Although Japan Aviation Electronics Industry's revenues are expected to improve, it seems that it is still expected to grow slower than 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Japan Aviation Electronics Industry'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 Japan Aviation Electronics Industry going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Japan Aviation Electronics Industry that we have uncovered.
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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.