Earnings Miss: YASKAWA Electric Corporation Missed EPS By 5.7% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for YASKAWA Electric Corporation (TSE:6506), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 2.2% short of analyst estimates at JP¥126b, and statutory earnings of JP¥26.81 per share missed forecasts by 5.7%. 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, YASKAWA Electric's 18 analysts currently expect revenues in 2026 to be JP¥530.5b, approximately in line with the last 12 months. Statutory earnings per share are expected to tumble 34% to JP¥140 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥542.2b and earnings per share (EPS) of JP¥149 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Check out our latest analysis for YASKAWA Electric

Despite the cuts to forecast earnings, there was no real change to the JP¥3,767 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on YASKAWA Electric, with the most bullish analyst valuing it at JP¥5,300 and the most bearish at JP¥2,500 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that revenue is expected to reverse, with a forecast 0.1% annualised decline to the end of 2026. That is a notable change from historical growth of 8.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.5% annually for the foreseeable future. It's pretty clear that YASKAWA Electric's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for YASKAWA Electric. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at JP¥3,767, 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 estimates - from multiple YASKAWA Electric analysts - going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 4 warning signs for YASKAWA Electric (of which 1 is significant!) you should know about.

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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.