DAIHEN Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

A week ago, DAIHEN Corporation (TSE:6622) came out with a strong set of half-year numbers that could potentially lead to a re-rate of the stock. DAIHEN beat earnings, with revenues hitting JP¥105b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 19%. 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.

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Taking into account the latest results, DAIHEN's five analysts currently expect revenues in 2026 to be JP¥239.1b, approximately in line with the last 12 months. Per-share earnings are expected to step up 12% to JP¥603. In the lead-up to this report, the analysts had been modelling revenues of JP¥231.7b and earnings per share (EPS) of JP¥571 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Check out our latest analysis for DAIHEN

Despite these upgrades,the analysts have not made any major changes to their price target of JP¥9,900, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values DAIHEN at JP¥11,200 per share, while the most bearish prices it at JP¥8,800. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that DAIHEN's revenue growth is expected to slow, with the forecast 3.0% annualised growth rate until the end of 2026 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that DAIHEN is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around DAIHEN's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at JP¥9,900, 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 DAIHEN analysts - going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - DAIHEN has 1 warning sign we think you should be aware of.

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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.