DENSO Corporation (TSE:6902) Half-Yearly Results: Here's What Analysts Are Forecasting For This Year

DENSO Corporation (TSE:6902) just released its latest interim report and things are not looking great. DENSO missed analyst forecasts, with revenues of JP¥3.5t and statutory earnings per share (EPS) of JP¥33.11, falling short by 2.4% and 3.8% respectively. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for DENSO

Following last week's earnings report, DENSO's 17 analysts are forecasting 2025 revenues to be JP¥7.23t, approximately in line with the last 12 months. Per-share earnings are expected to jump 46% to JP¥168. Before this earnings report, the analysts had been forecasting revenues of JP¥7.35t and earnings per share (EPS) of JP¥175 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at JP¥2,791, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on DENSO, with the most bullish analyst valuing it at JP¥3,400 and the most bearish at JP¥2,500 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's pretty clear that there is an expectation that DENSO's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.5% growth on an annualised basis. This is compared to a historical growth rate of 8.9% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.6% annually. Factoring in the forecast slowdown in growth, it looks like DENSO is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for DENSO. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for DENSO going out to 2027, and you can see them free on our platform here..

You can also see our analysis of DENSO's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.