Advantest Corporation (TSE:6857) Just Beat Earnings: Here's What Analysts Think Will Happen Next

Advantest Corporation (TSE:6857) just released its third-quarter report and things are looking bullish. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 18% higher than the analysts had forecast, at JP¥218b, while EPS of JP¥70.30 beat analyst models by 16%. 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.

See our latest analysis for Advantest

Taking into account the latest results, the current consensus from Advantest's 18 analysts is for revenues of JP¥827.8b in 2026. This would reflect a huge 21% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 54% to JP¥286. In the lead-up to this report, the analysts had been modelling revenues of JP¥811.1b and earnings per share (EPS) of JP¥278 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of JP¥10,653, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values Advantest at JP¥14,000 per share, while the most bearish prices 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.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.8% per year. So although Advantest is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Advantest's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at JP¥10,653, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Advantest. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Advantest going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Advantest that you need to take into consideration.

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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.