SMC Corporation (TSE:6273) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders of SMC Corporation (TSE:6273) will be pleased this week, given that the stock price is up 12% to JP¥53,250 following its latest yearly results. SMC reported in line with analyst predictions, delivering revenues of JP¥792b and statutory earnings per share of JP¥2,445, suggesting the business is executing well and in line with its plan. 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.

We've discovered 1 warning sign about SMC. View them for free.

Taking into account the latest results, the consensus forecast from SMC's 15 analysts is for revenues of JP¥843.5b in 2026. This reflects a modest 6.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.7% to JP¥2,667. In the lead-up to this report, the analysts had been modelling revenues of JP¥837.4b and earnings per share (EPS) of JP¥2,706 in 2026. 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 SMC

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥65,068. 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. Currently, the most bullish analyst values SMC at JP¥80,000 per share, while the most bearish prices it at JP¥53,500. 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 SMC shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SMC's past performance and to peers in the same industry. It's pretty clear that there is an expectation that SMC's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.5% growth on an annualised basis. This is compared to a historical growth rate of 9.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.3% annually. Even after the forecast slowdown in growth, it seems obvious that SMC is also expected 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. 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¥65,068, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple SMC analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for SMC that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.