YASKAWA Electric Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week saw the newest annual earnings release from YASKAWA Electric Corporation (TSE:6506), an important milestone in the company's journey to build a stronger business. YASKAWA Electric reported JP¥576b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥194 beat expectations, being 6.1% higher than what the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for YASKAWA Electric

After the latest results, the 18 analysts covering YASKAWA Electric are now predicting revenues of JP¥591.3b in 2025. If met, this would reflect a modest 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.8% to JP¥205. Before this earnings report, the analysts had been forecasting revenues of JP¥589.1b and earnings per share (EPS) of JP¥203 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of JP¥6,066, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic YASKAWA Electric analyst has a price target of JP¥7,500 per share, while the most pessimistic values it at JP¥3,600. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the YASKAWA Electric's past performance and to peers in the same industry. It's pretty clear that there is an expectation that YASKAWA Electric's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 7.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that YASKAWA 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 YASKAWA Electric's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥6,066, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on YASKAWA Electric. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple YASKAWA Electric analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether YASKAWA Electric's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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.