DAIHEN Corporation Just Missed Earnings - But Analysts Have Updated Their Models

It's been a sad week for DAIHEN Corporation (TSE:6622), who've watched their investment drop 12% to JP¥6,390 in the week since the company reported its quarterly result. Results overall were not great, with earnings of JP¥26.17 per share falling drastically short of analyst expectations. Meanwhile revenues hit JP¥43b and were slightly better than forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for DAIHEN

Taking into account the latest results, the consensus forecast from DAIHEN's five analysts is for revenues of JP¥207.8b in 2025. This reflects a reasonable 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to nosedive 25% to JP¥504 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥209.6b and earnings per share (EPS) of JP¥525 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at JP¥10,125, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on DAIHEN, with the most bullish analyst valuing it at JP¥12,000 and the most bearish at JP¥8,000 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of DAIHEN'shistorical trends, as the 7.7% annualised revenue growth to the end of 2025 is roughly in line with the 7.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.8% annually. So it's pretty clear that DAIHEN is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still 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.

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 DAIHEN going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for DAIHEN 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.