DAIHEN Corporation Just Recorded A 63% EPS Beat: Here's What Analysts Are Forecasting Next

DAIHEN Corporation (TSE:6622) just released its latest interim results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.4% to hit JP¥96b. DAIHEN also reported a statutory profit of JP¥147, which was an impressive 63% above what the analysts had forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for DAIHEN

Following last week's earnings report, DAIHEN's five analysts are forecasting 2025 revenues to be JP¥208.1b, approximately in line with the last 12 months. Statutory earnings per share are forecast to nosedive 26% to JP¥508 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥208.2b and earnings per share (EPS) of JP¥497 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of JP¥9,175, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic DAIHEN analyst has a price target of JP¥10,500 per share, while the most pessimistic values it at JP¥8,000. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that DAIHEN's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2025 being well below the historical 7.9% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.5% annually. 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 most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards DAIHEN following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 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 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for DAIHEN you should know about.

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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.