Aisin Corporation (TSE:7259) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

The investors in Aisin Corporation's (TSE:7259) will be rubbing their hands together with glee today, after the share price leapt 20% to JP¥1,793 in the week following its annual results. Aisin reported in line with analyst predictions, delivering revenues of JP¥4.9t and statutory earnings per share of JP¥138, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Aisin after the latest results.

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Taking into account the latest results, the most recent consensus for Aisin from 13 analysts is for revenues of JP¥5.06t in 2026. If met, it would imply a satisfactory 3.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 54% to JP¥219. In the lead-up to this report, the analysts had been modelling revenues of JP¥5.04t and earnings per share (EPS) of JP¥225 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Aisin

The consensus price target held steady at JP¥1,981, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Aisin analyst has a price target of JP¥2,500 per share, while the most pessimistic values it at JP¥1,350. 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 Aisin shareholders.

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. We would highlight that Aisin's revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2026 being well below the historical 8.1% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.1% annually. So it's pretty clear that, while Aisin's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥1,981, with the latest estimates not enough to have an impact on their price targets.

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 Aisin going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - Aisin has 1 warning sign we think you should be aware of.

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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.