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

Advantest Corporation (TSE:6857) investors will be delighted, with the company turning in some strong numbers with its latest results. Advantest delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting JP¥264b-15% above indicated-andJP¥123-31% above forecasts- respectively 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the 20 analysts covering Advantest provided consensus estimates of JP¥870.8b revenue in 2026, which would reflect a discernible 3.8% decline over the past 12 months. Per-share earnings are expected to rise 2.9% to JP¥320. Before this earnings report, the analysts had been forecasting revenues of JP¥874.8b and earnings per share (EPS) of JP¥310 in 2026. So the consensus seems to have become somewhat more optimistic on Advantest's earnings potential following these results.

See our latest analysis for Advantest

The consensus price target was unchanged at JP¥10,978, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Advantest analyst has a price target of JP¥16,000 per share, while the most pessimistic values it at JP¥6,000. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.0% by the end of 2026. This indicates a significant reduction from annual growth of 20% 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 6.8% per year. It's pretty clear that Advantest's revenues are expected to perform substantially worse than the wider industry.

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 Advantest following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥10,978, 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 estimates - from multiple Advantest analysts - going out to 2028, 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 Advantest 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.