Daikin Industries,Ltd. (TSE:6367) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Daikin Industries,Ltd. (TSE:6367) defied analyst predictions to release its full-year results, which were ahead of market expectations. The company beat expectations with revenues of JP¥4.4t arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were JP¥889, 2.8% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Daikin IndustriesLtd

Following last week's earnings report, Daikin IndustriesLtd's twelve analysts are forecasting 2025 revenues to be JP¥4.48t, approximately in line with the last 12 months. Per-share earnings are expected to increase 7.8% to JP¥958. In the lead-up to this report, the analysts had been modelling revenues of JP¥4.45t and earnings per share (EPS) of JP¥945 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¥24,246, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Daikin IndustriesLtd, with the most bullish analyst valuing it at JP¥31,000 and the most bearish at JP¥18,600 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Daikin IndustriesLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.9% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Daikin IndustriesLtd is also expected to grow slower than other industry participants.

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 Daikin IndustriesLtd's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥24,246, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Daikin IndustriesLtd going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Daikin IndustriesLtd's balance sheet, and whether we think Daikin IndustriesLtd is carrying too much debt, for free on our platform here.

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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.