Analysts Have Made A Financial Statement On Daikin Industries,Ltd.'s (TSE:6367) Yearly Report

Shareholders might have noticed that Daikin Industries,Ltd. (TSE:6367) filed its full-year result this time last week. The early response was not positive, with shares down 7.3% to JP¥16,000 in the past week. The result was positive overall - although revenues of JP¥4.8t were in line with what the analysts predicted, Daikin IndustriesLtd surprised by delivering a statutory profit of JP¥904 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Daikin IndustriesLtd's 14 analysts is for revenues of JP¥4.92t in 2026. This would reflect a reasonable 3.4% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 6.1% to JP¥960. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥4.94t and earnings per share (EPS) of JP¥973 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.

Check out our latest analysis for Daikin IndustriesLtd

The analysts reconfirmed their price target of JP¥19,936, 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. The most optimistic Daikin IndustriesLtd analyst has a price target of JP¥25,000 per share, while the most pessimistic values it at JP¥16,000. 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 Daikin IndustriesLtd shareholders.

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 would highlight that Daikin IndustriesLtd's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2026 being well below the historical 16% p.a. growth over the last five years. Compare this to the 59 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.1% per year. Factoring in the forecast slowdown in growth, it looks like Daikin IndustriesLtd is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥19,936, 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. We have forecasts for Daikin IndustriesLtd going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Daikin IndustriesLtd that 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.