Results: Panasonic Holdings Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

A week ago, Panasonic Holdings Corporation (TSE:6752) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Panasonic Holdings beat earnings, with revenues hitting JP¥2.1t, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Panasonic Holdings

Taking into account the latest results, Panasonic Holdings' 14 analysts currently expect revenues in 2025 to be JP¥8.64t, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 5.1% to JP¥141. In the lead-up to this report, the analysts had been modelling revenues of JP¥8.63t and earnings per share (EPS) of JP¥145 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at JP¥1,682, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Panasonic Holdings, with the most bullish analyst valuing it at JP¥2,400 and the most bearish at JP¥1,065 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Panasonic Holdings' revenue growth is expected to slow, with the forecast 0.7% annualised growth rate until the end of 2025 being well below the historical 3.6% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Panasonic Holdings is also expected to grow slower than other industry participants.

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. The consensus price target held steady at JP¥1,682, with the latest estimates not enough to have an impact on their price targets.

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 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Panasonic Holdings that 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com