Earnings Beat: IHI Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

IHI Corporation (TSE:7013) shareholders are probably feeling a little disappointed, since its shares fell 3.9% to JP¥9,285 in the week after its latest quarterly results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥393b, statutory earnings beat expectations by a notable 70%, coming in at JP¥248 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for IHI

Taking into account the latest results, the most recent consensus for IHI from ten analysts is for revenues of JP¥1.68t in 2026. If met, it would imply a satisfactory 4.8% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to sink 16% to JP¥658 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥1.68t and earnings per share (EPS) of JP¥655 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¥9,900, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic IHI analyst has a price target of JP¥12,000 per share, while the most pessimistic values it at JP¥7,500. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 can infer from the latest estimates that forecasts expect a continuation of IHI'shistorical trends, as the 3.8% annualised revenue growth to the end of 2026 is roughly in line with the 3.2% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.7% per year. So although IHI is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that IHI's revenue is expected to perform worse 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. At Simply Wall St, we have a full range of analyst estimates for IHI going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with IHI (including 2 which are a bit unpleasant) .

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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.