Shin-Etsu Chemical Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Shin-Etsu Chemical Co., Ltd. (TSE:4063) had a good week, as its shares rose 3.9% to close at JP¥6,844 following the release of its quarterly results. Revenues were JP¥598b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥72.21 were also better than expected, beating analyst predictions by 12%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shin-Etsu Chemical after the latest results.

See our latest analysis for Shin-Etsu Chemical

Taking into account the latest results, the consensus forecast from Shin-Etsu Chemical's 17 analysts is for revenues of JP¥2.59t in 2025. This reflects a satisfactory 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to JP¥287. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.59t and earnings per share (EPS) of JP¥289 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥7,215. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Shin-Etsu Chemical, with the most bullish analyst valuing it at JP¥7,800 and the most bearish at JP¥6,000 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Shin-Etsu Chemical's revenue growth is expected to slow, with the forecast 9.7% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% annually. Even after the forecast slowdown in growth, it seems obvious that Shin-Etsu Chemical is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥7,215, 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 forecasts for Shin-Etsu Chemical going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Shin-Etsu Chemical'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.

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