Meidensha Corporation Just Missed EPS By 24%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Meidensha Corporation (TSE:6508) filed its half-year result this time last week. The early response was not positive, with shares down 7.4% to JP¥6,130 in the past week. Revenue of JP¥131b surpassed estimates by 4.3%, although statutory earnings per share missed badly, coming in 24% below expectations at JP¥34.42 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Meidensha after the latest results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following the latest results, Meidensha's six analysts are now forecasting revenues of JP¥322.4b in 2026. This would be a modest 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 6.6% to JP¥379 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥329.0b and earnings per share (EPS) of JP¥382 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

View our latest analysis for Meidensha

The consensus has reconfirmed its price target of JP¥6,942, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Meidensha's market value. 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 Meidensha analyst has a price target of JP¥8,000 per share, while the most pessimistic values it at JP¥5,500. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Meidensha's rate of growth is expected to accelerate meaningfully, with the forecast 6.7% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Meidensha to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also downgraded Meidensha's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Meidensha going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Meidensha you should be aware of.

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.