Mitsubishi Electric Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

A week ago, Mitsubishi Electric Corporation (TSE:6503) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of JP¥1.4t, some 4.7% above estimates, and statutory earnings per share (EPS) coming in at JP¥62.23, 45% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Mitsubishi Electric

After the latest results, the 18 analysts covering Mitsubishi Electric are now predicting revenues of JP¥5.60t in 2026. If met, this would reflect an okay 2.2% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥165, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥5.59t and earnings per share (EPS) of JP¥166 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,911. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Mitsubishi Electric analyst has a price target of JP¥3,400 per share, while the most pessimistic values it at JP¥1,800. 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 Mitsubishi Electric shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Mitsubishi Electric's revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2026 being well below the historical 5.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Mitsubishi Electric 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 Mitsubishi Electric's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥2,911, 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 forecasts for Mitsubishi Electric going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.