Hitachi, Ltd. Just Missed EPS By 14%: Here's What Analysts Think Will Happen Next

Investors in Hitachi, Ltd. (TSE:6501) had a good week, as its shares rose 9.5% to close at JP¥3,977 following the release of its third-quarter results. It was not a great result overall. Although revenues beat expectations, hitting JP¥2.5t, statutory earnings missed analyst forecasts by 14%, coming in at just JP¥30.21 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Hitachi

Taking into account the latest results, the most recent consensus for Hitachi from 15 analysts is for revenues of JP¥10t in 2026. If met, it would imply a notable 8.8% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 43% to JP¥180. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥10t and earnings per share (EPS) of JP¥178 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.

There were no changes to revenue or earnings estimates or the price target of JP¥4,601, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Hitachi, with the most bullish analyst valuing it at JP¥5,600 and the most bearish at JP¥3,500 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Hitachi's growth to accelerate, with the forecast 7.0% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hitachi to grow faster than 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 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¥4,601, 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 Hitachi going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Hitachi's balance sheet, and whether we think Hitachi 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.