Panasonic Holdings Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week saw the newest yearly earnings release from Panasonic Holdings Corporation (TSE:6752), an important milestone in the company's journey to build a stronger business. Revenues were JP¥8.5t, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥157 were also better than expected, beating analyst predictions by 14%. 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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Following the recent earnings report, the consensus from 15 analysts covering Panasonic Holdings is for revenues of JP¥7.87t in 2026. This implies a small 6.9% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 5.3% to JP¥149 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥7.81t and earnings per share (EPS) of JP¥154 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Panasonic Holdings

The consensus price target held steady at JP¥2,194, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Panasonic Holdings, with the most bullish analyst valuing it at JP¥2,700 and the most bearish at JP¥1,500 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Panasonic Holdings' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.9% by the end of 2026. This indicates a significant reduction from annual growth of 5.5% 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 0.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Panasonic Holdings is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Panasonic Holdings. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 estimates - from multiple Panasonic Holdings analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Panasonic Holdings .

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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.