Results: Meidensha Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

The yearly results for Meidensha Corporation (TSE:6508) were released last week, making it a good time to revisit its performance. Revenues were JP¥301b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥408, an impressive 28% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Meidensha from five analysts is for revenues of JP¥323.8b in 2026. If met, it would imply a satisfactory 7.5% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to descend 13% to JP¥354 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥321.1b and earnings per share (EPS) of JP¥357 in 2026. 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.

See our latest analysis for Meidensha

The analysts reconfirmed their price target of JP¥5,600, showing that the business is executing well and in line with expectations. 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¥7,100 per share, while the most pessimistic values it at JP¥4,500. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Meidensha shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Meidensha's growth to accelerate, with the forecast 7.5% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.4% per annum 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 4.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Meidensha is expected to grow much faster than its industry.

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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Meidensha. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Meidensha going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Meidensha that you need to take into consideration.

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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.