ROHM Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

ROHM Co., Ltd. (TSE:6963) shareholders are probably feeling a little disappointed, since its shares fell 9.0% to JP¥2,044 in the week after its latest annual results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥468b, statutory earnings beat expectations by a notable 10%, coming in at JP¥139 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for ROHM

Taking into account the latest results, the consensus forecast from ROHM's 13 analysts is for revenues of JP¥519.5b in 2025. This reflects a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to descend 14% to JP¥120 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥523.6b and earnings per share (EPS) of JP¥126 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at JP¥3,044, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic ROHM analyst has a price target of JP¥3,875 per share, while the most pessimistic values it at JP¥1,750. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ROHM's past performance and to peers in the same industry. It's clear from the latest estimates that ROHM's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ROHM is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥3,044, 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 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with ROHM .

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.