Ibiden Co.,Ltd. Just Missed Earnings - But Analysts Have Updated Their Models
As you might know, Ibiden Co.,Ltd. (TSE:4062) recently reported its half-yearly numbers. IbidenLtd beat revenue expectations by 3.1%, at JP¥263b. Statutory earnings per share (EPS) came in at JP¥36.56, some 8.5% short of analyst estimates. 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.
After the latest results, the 18 analysts covering IbidenLtd are now predicting revenues of JP¥556.0b in 2027. If met, this would reflect a solid 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 13% to JP¥161. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥551.2b and earnings per share (EPS) of JP¥160 in 2027. 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 IbidenLtd
The analysts reconfirmed their price target of JP¥12,494, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values IbidenLtd at JP¥15,000 per share, while the most bearish prices it at JP¥5,250. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. The analysts are definitely expecting IbidenLtd's growth to accelerate, with the forecast 32% annualised growth to the end of 2027 ranking favourably alongside historical growth of 1.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect IbidenLtd to grow faster 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple IbidenLtd analysts - going out to 2029, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with IbidenLtd (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.
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