Mitsubishi Electric Corporation Just Beat EPS By 27%: Here's What Analysts Think Will Happen Next

Mitsubishi Electric Corporation (TSE:6503) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of JP¥2.7t, some 5.1% above estimates, and statutory earnings per share (EPS) coming in at JP¥47.85, 27% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following last week's earnings report, Mitsubishi Electric's 16 analysts are forecasting 2026 revenues to be JP¥5.61t, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥5.55t and earnings per share (EPS) of JP¥173 in 2026. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

See our latest analysis for Mitsubishi Electric

The average price target rose 7.1% to JP¥3,933, with the analysts clearly having become more optimistic about Mitsubishi Electric'sprospects following these results. 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 Mitsubishi Electric, with the most bullish analyst valuing it at JP¥5,200 and the most bearish at JP¥2,100 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.05% by the end of 2026. This indicates a significant reduction from annual growth of 6.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Mitsubishi Electric is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

At least one of Mitsubishi Electric's 16 analysts has provided estimates out to 2028, which can be seen for free on our platform here.

You can also see our analysis of Mitsubishi Electric's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.