Analyst Estimates: Here's What Brokers Think Of ROHM Co., Ltd. (TSE:6963) After Its Full-Year Report

It's been a good week for ROHM Co., Ltd. (TSE:6963) shareholders, because the company has just released its latest full-year results, and the shares gained 7.2% to JP¥1,429. It was a pretty bad result overall; while revenues were in line with expectations at JP¥448b, statutory losses exploded to JP¥130 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 2 warning signs about ROHM. View them for free.

Following the latest results, ROHM's nine analysts are now forecasting revenues of JP¥459.4b in 2026. This would be a modest 2.4% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with ROHM forecast to report a statutory profit of JP¥24.16 per share. In the lead-up to this report, the analysts had been modelling revenues of JP¥475.0b and earnings per share (EPS) of JP¥24.27 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

Check out our latest analysis for ROHM

The consensus has reconfirmed its price target of JP¥1,603, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on ROHM's market value. 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. The most optimistic ROHM analyst has a price target of JP¥2,000 per share, while the most pessimistic values it at JP¥1,250. 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 ROHM's revenue growth is expected to slow, with the forecast 2.4% annualised growth rate until the end of 2026 being well below the historical 6.3% 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 7.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than ROHM.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at JP¥1,603, 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. At Simply Wall St, we have a full range of analyst estimates for ROHM going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for ROHM (1 shouldn't be ignored!) 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.