YASKAWA Electric Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

YASKAWA Electric Corporation (TSE:6506) defied analyst predictions to release its half-yearly results, which were ahead of market expectations. The company beat forecasts, with revenue of JP¥260b, some 4.8% above estimates, and statutory earnings per share (EPS) coming in at JP¥43.55, 53% 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on YASKAWA Electric after the latest results.

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Following last week's earnings report, YASKAWA Electric's 20 analysts are forecasting 2026 revenues to be JP¥533.3b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dive 33% to JP¥148 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥523.6b and earnings per share (EPS) of JP¥132 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the substantial gain in earnings per share expectations following these results.

View our latest analysis for YASKAWA Electric

The consensus price target was unchanged at JP¥3,583, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic YASKAWA Electric analyst has a price target of JP¥5,300 per share, while the most pessimistic values it at JP¥2,800. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 1.1% annualised decline to the end of 2026. That is a notable change from historical growth of 7.1% 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 4.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - YASKAWA Electric is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards YASKAWA Electric following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that YASKAWA Electric's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,583, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple YASKAWA Electric analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with YASKAWA Electric (including 2 which are a bit unpleasant) .

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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.