Tamron Co.,Ltd. Just Beat Revenue Estimates By 11%

Tamron Co.,Ltd. (TSE:7740) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. TamronLtd beat revenue forecasts by a solid 11% to hit JP¥24b. Statutory earnings per share came in at JP¥259, in line with expectations. 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 TamronLtd after the latest results.

See our latest analysis for TamronLtd

Following last week's earnings report, TamronLtd's five analysts are forecasting 2025 revenues to be JP¥89.1b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 4.2% to JP¥351 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥87.5b and earnings per share (EPS) of JP¥336 in 2025. So the consensus seems to have become somewhat more optimistic on TamronLtd's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.4% to JP¥4,513. 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. There are some variant perceptions on TamronLtd, with the most bullish analyst valuing it at JP¥5,700 and the most bearish at JP¥3,650 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.

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. It's pretty clear that there is an expectation that TamronLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.9% growth on an annualised basis. This is compared to a historical growth rate of 7.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than TamronLtd.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards TamronLtd following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TamronLtd's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for TamronLtd going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for TamronLtd you should know about.

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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.