DAIHEN Corporation (TSE:6622) Just Beat Earnings: Here's What Analysts Think Will Happen Next

DAIHEN Corporation (TSE:6622) investors will be delighted, with the company turning in some strong numbers with its latest results. DAIHEN delivered a significant beat with revenue hitting JP¥60b and statutory EPS reaching JP¥141, both beating estimates by more than 10%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for DAIHEN

Taking into account the latest results, the current consensus from DAIHEN's five analysts is for revenues of JP¥227.4b in 2026. This would reflect a modest 4.7% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 20% to JP¥636. In the lead-up to this report, the analysts had been modelling revenues of JP¥226.0b and earnings per share (EPS) of JP¥635 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of JP¥9,375, showing that the business is executing well and in line with expectations. 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¥11,000 and the most bearish at JP¥8,000 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DAIHEN's past performance and to peers in the same industry. We would highlight that DAIHEN's revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2026 being well below the historical 8.5% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% annually. So it's pretty clear that, while DAIHEN's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 DAIHEN. Long-term earnings power is much more important than next year's profits. We have forecasts for DAIHEN going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for DAIHEN that you need to be mindful 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.