Ebara Corporation Just Beat Revenue Estimates By 5.2%

It's been a pretty great week for Ebara Corporation (TSE:6361) shareholders, with its shares surging 10% to JP¥3,238 in the week since its latest half-year results. Results overall were respectable, with statutory earnings of JP¥155 per share roughly in line with what the analysts had forecast. Revenues of JP¥449b came in 5.2% ahead of analyst predictions. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Ebara's ten analysts currently expect revenues in 2025 to be JP¥914.5b, approximately in line with the last 12 months. Per-share earnings are expected to rise 2.9% to JP¥164. In the lead-up to this report, the analysts had been modelling revenues of JP¥912.6b and earnings per share (EPS) of JP¥165 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.

View our latest analysis for Ebara

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,278. 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 Ebara, with the most bullish analyst valuing it at JP¥4,500 and the most bearish at JP¥2,800 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.4% annualised decline to the end of 2025. That is a notable change from historical growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Ebara is expected to lag 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Ebara's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,278, 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 Ebara analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Ebara .

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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.