Olympus Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

The annual results for Olympus Corporation (TSE:7733) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of JP¥997b were in line with what the analysts predicted, Olympus surprised by delivering a statutory profit of JP¥103 per share, a notable 10% above expectations. 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. 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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Taking into account the latest results, the most recent consensus for Olympus from 15 analysts is for revenues of JP¥1.03t in 2026. If met, it would imply a credible 3.3% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 2.0% to JP¥107. Before this earnings report, the analysts had been forecasting revenues of JP¥1.03t and earnings per share (EPS) of JP¥110 in 2026. 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.

Check out our latest analysis for Olympus

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥2,567, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Olympus, with the most bullish analyst valuing it at JP¥3,412 and the most bearish at JP¥1,900 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. We would highlight that Olympus' revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2026 being well below the historical 6.4% 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 6.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Olympus.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Olympus' revenue is expected to 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Olympus going out to 2028, and you can see them free on our platform here..

You can also see our analysis of Olympus' 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.