Rinnai Corporation (TSE:5947) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for Rinnai Corporation (TSE:5947) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.8% to JP¥3,943. Rinnai reported JP¥103b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥47.15 beat expectations, being 4.3% higher than what the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Rinnai's eight analysts currently expect revenues in 2026 to be JP¥473.9b, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 14% to JP¥240. Before this earnings report, the analysts had been forecasting revenues of JP¥473.1b and earnings per share (EPS) of JP¥239 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.

View our latest analysis for Rinnai

There were no changes to revenue or earnings estimates or the price target of JP¥4,376, suggesting that the company has met expectations in its recent result. 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 Rinnai at JP¥4,960 per share, while the most bearish prices it at JP¥3,800. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. It's pretty clear that there is an expectation that Rinnai's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 7.0% 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) 1.4% per year. Even after the forecast slowdown in growth, it seems obvious that Rinnai is also expected 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 no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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

We also provide an overview of the Rinnai Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.