Results: Shimano Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Shimano Inc. (TSE:7309) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues were JP¥451b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥853 were also better than expected, beating analyst predictions by 20%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shimano after the latest results.

See our latest analysis for Shimano

Taking into account the latest results, the most recent consensus for Shimano from ten analysts is for revenues of JP¥498.8b in 2025. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 2.3% to JP¥877. In the lead-up to this report, the analysts had been modelling revenues of JP¥500.0b and earnings per share (EPS) of JP¥876 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥24,328. 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 Shimano at JP¥32,000 per share, while the most bearish prices it at JP¥19,500. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Shimano's growth to accelerate, with the forecast 11% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shimano to grow faster 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥24,328, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Shimano. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Shimano going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Shimano's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.