IHI Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders might have noticed that IHI Corporation (TSE:7013) filed its yearly result this time last week. The early response was not positive, with shares down 3.6% to JP¥15,190 in the past week. It looks like a credible result overall - although revenues of JP¥1.6t were in line with what the analysts predicted, IHI surprised by delivering a statutory profit of JP¥745 per share, a notable 14% above expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from IHI's ten analysts is for revenues of JP¥1.66t in 2026. This would reflect a satisfactory 2.3% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 2.3% to JP¥728 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.66t and earnings per share (EPS) of JP¥724 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for IHI

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 10% to JP¥15,640. It looks as though they previously had some doubts over whether the business would live up to their 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. The most optimistic IHI analyst has a price target of JP¥20,000 per share, while the most pessimistic values it at JP¥7,500. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the IHI's past performance and to peers in the same industry. It's pretty clear that there is an expectation that IHI's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 4.8% 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 4.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that IHI is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 2028, 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 2 warning signs for IHI 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.