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

Shareholders of Panasonic Holdings Corporation (TSE:6752) will be pleased this week, given that the stock price is up 13% to JP¥1,776 following its latest third-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥2.2t, statutory earnings beat expectations by a notable 15%, coming in at JP¥42.62 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Panasonic Holdings

Taking into account the latest results, the current consensus, from the 15 analysts covering Panasonic Holdings, is for revenues of JP¥7.89t in 2026. This implies an uneasy 8.2% reduction in Panasonic Holdings' revenue over the past 12 months. Statutory earnings per share are predicted to soar 21% to JP¥173. Before this earnings report, the analysts had been forecasting revenues of JP¥7.87t and earnings per share (EPS) of JP¥173 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 consensus price target rose 5.9% to JP¥1,851despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Panasonic Holdings' earnings by assigning a price premium. 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 Panasonic Holdings analyst has a price target of JP¥2,500 per share, while the most pessimistic values it at JP¥1,340. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 6.6% annualised decline to the end of 2026. That is a notable change from historical growth of 5.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 0.9% per year. It's pretty clear that Panasonic Holdings' revenues are expected to perform substantially worse 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 Panasonic Holdings' revenue is expected to perform worse 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. At Simply Wall St, we have a full range of analyst estimates for Panasonic Holdings going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 3 warning signs for Panasonic Holdings you should be aware 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.