ROHM Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Explore ROHM's Fair Values from the Community and select yours

ROHM Co., Ltd. (TSE:6963) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of JP¥116b, some 4.4% above estimates, and statutory earnings per share (EPS) coming in at JP¥7.69, 2,209% ahead of expectations. 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, ROHM's eleven analysts currently expect revenues in 2026 to be JP¥454.7b, approximately in line with the last 12 months. Earnings are expected to improve, with ROHM forecast to report a statutory profit of JP¥27.83 per share. Before this earnings report, the analysts had been forecasting revenues of JP¥450.0b and earnings per share (EPS) of JP¥28.70 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for ROHM

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥1,848, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values ROHM at JP¥2,000 per share, while the most bearish prices it at JP¥1,300. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that ROHM's revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2026 being well below the historical 5.3% 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 6.8% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ROHM. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ROHM's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥1,848, with the latest estimates not enough to have an impact on their price targets.

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 ROHM going out to 2028, and you can see them free on our platform here.

Even so, be aware that ROHM is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...

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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.