DAIHEN Corporation (TSE:6622) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that DAIHEN Corporation (TSE:6622) filed its annual result this time last week. The early response was not positive, with shares down 2.6% to JP¥6,360 in the past week. DAIHEN beat revenue expectations by 4.3%, at JP¥226b. Statutory earnings per share (EPS) came in at JP¥493, some 4.8% short of analyst estimates. 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.

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Following the latest results, DAIHEN's five analysts are now forecasting revenues of JP¥233.1b in 2026. This would be a credible 2.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 17% to JP¥587. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥230.4b and earnings per share (EPS) of JP¥622 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for DAIHEN

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥8,750, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on DAIHEN, with the most bullish analyst valuing it at JP¥10,000 and the most bearish at JP¥8,000 per share. This is a very narrow spread of estimates, implying either that DAIHEN is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that DAIHEN's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 9.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.9% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for DAIHEN. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that DAIHEN's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥8,750, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for DAIHEN going out to 2028, and you can see them free on our platform here..

Even so, be aware that DAIHEN is showing 2 warning signs in our investment analysis , 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.