SMC Corporation Just Recorded A 11% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a good week for SMC Corporation (TSE:6273) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.3% to JP¥64,750. It looks like a credible result overall - although revenues of JP¥203b were in line with what the analysts predicted, SMC surprised by delivering a statutory profit of JP¥759 per share, a notable 11% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for SMC

Following the latest results, SMC's 14 analysts are now forecasting revenues of JP¥840.0b in 2025. This would be a reasonable 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.2% to JP¥2,978. In the lead-up to this report, the analysts had been modelling revenues of JP¥844.3b and earnings per share (EPS) of JP¥2,990 in 2025. 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.

The analysts reconfirmed their price target of JP¥90,726, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on SMC, with the most bullish analyst valuing it at JP¥106,000 and the most bearish at JP¥71,000 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. We can infer from the latest estimates that forecasts expect a continuation of SMC'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.8% annually. So it's pretty clear that SMC is forecast to grow substantially faster than its 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥90,726, 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 SMC going out to 2027, and you can see them free on our platform here..

You can also see our analysis of SMC'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.