Results: IHI Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Last week, you might have seen that IHI Corporation (TSE:7013) released its half-yearly result to the market. The early response was not positive, with shares down 4.7% to JP¥3,065 in the past week. Revenues of JP¥714b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of JP¥41.81 an impressive 40% ahead of estimates. 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. 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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After the latest results, the eleven analysts covering IHI are now predicting revenues of JP¥1.67t in 2026. If met, this would reflect an okay 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 5.7% to JP¥115 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.68t and earnings per share (EPS) of JP¥115 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.

Check out our latest analysis for IHI

The consensus price target rose 6.7% to JP¥3,023despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of IHI's earnings by assigning a price premium. 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. Currently, the most bullish analyst values IHI at JP¥3,700 per share, while the most bearish prices it at JP¥1,986. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting IHI's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect IHI to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for IHI going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for IHI (of which 1 makes us a bit uncomfortable!) 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.