The Panasonic Holdings Corporation (TSE:6752) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Panasonic Holdings Corporation (TSE:6752) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. The company beat expectations with revenues of JP¥1.9t arriving 4.4% ahead of forecasts. Statutory earnings per share (EPS) were JP¥30.61, 5.3% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the consensus from Panasonic Holdings' 15 analysts is for revenues of JP¥7.83t in 2026, which would reflect a small 4.9% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to decline 15% to JP¥134 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥7.87t and earnings per share (EPS) of JP¥137 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

View our latest analysis for Panasonic Holdings

The consensus price target held steady at JP¥2,076, 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¥2,700 and the most bearish at JP¥1,500 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.4% by the end of 2026. This indicates a significant reduction from annual growth of 5.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.4% annually for the foreseeable future. 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 most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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¥2,076, 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 2028, and you can see them free 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.