ULVAC, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

ULVAC, Inc. (TSE:6728) defied analyst predictions to release its interim results, which were ahead of market expectations. The company beat expectations with revenues of JP¥135b arriving 5.5% ahead of forecasts. Statutory earnings per share (EPS) were JP¥211, 9.2% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for ULVAC

Taking into account the latest results, ULVAC's nine analysts currently expect revenues in 2025 to be JP¥272.3b, approximately in line with the last 12 months. Statutory per share are forecast to be JP¥481, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥273.3b and earnings per share (EPS) of JP¥479 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.

The consensus price target fell 5.0% to JP¥10,400, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the semi-annual results. 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. Currently, the most bullish analyst values ULVAC at JP¥12,200 per share, while the most bearish prices it at JP¥8,700. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ULVAC shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ULVAC's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 2.5% annualised decline to the end of 2025. That is a notable change from historical growth of 8.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ULVAC is expected to lag 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. We have forecasts for ULVAC going out to 2027, 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 ULVAC you should know about.

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

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.