Revenue Beat: Senshu Electric Co.,Ltd. Beat Analyst Estimates By 5.2%

It's been a sad week for Senshu Electric Co.,Ltd. (TSE:9824), who've watched their investment drop 10% to JP¥4,265 in the week since the company reported its quarterly result. Results overall were respectable, with statutory earnings of JP¥432 per share roughly in line with what the analyst had forecast. Revenues of JP¥37b came in 5.2% ahead of analyst predictions. The analyst 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Senshu ElectricLtd

After the latest results, the solitary analyst covering Senshu ElectricLtd are now predicting revenues of JP¥147.0b in 2025. If met, this would reflect a credible 5.6% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥459, approximately in line with the last 12 months. Before this earnings report, the analyst had been forecasting revenues of JP¥145.0b and earnings per share (EPS) of JP¥459 in 2025. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 774% to JP¥8,000despite there being no meaningful change to earnings estimates. It could be that the analystare reflecting the predictability of Senshu ElectricLtd's earnings by assigning a price premium.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Senshu ElectricLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.5% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.3% per year. So it's pretty clear that, while Senshu ElectricLtd's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous 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 analyst clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Senshu ElectricLtd going out as far as 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.