ROHM Co., Ltd. (TSE:6963) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

ROHM Co., Ltd. (TSE:6963) just released its latest quarterly report and things are not looking great. Revenues missed expectations somewhat, coming in at JP¥113b, but statutory earnings fell catastrophically short, with a loss of JP¥4.81 some 709% larger than what the analysts had predicted. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for ROHM

Taking into account the latest results, the consensus forecast from ROHM's eleven analysts is for revenues of JP¥497.7b in 2026. This reflects a notable 8.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 31% to JP¥30.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥500.4b and earnings per share (EPS) of JP¥42.56 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥1,773, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on ROHM, with the most bullish analyst valuing it at JP¥2,900 and the most bearish at JP¥1,200 per share. 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.

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 7.0% growth on an annualised basis. That is in line with its 7.0% 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 8.6% per year. So it's pretty clear that ROHM is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ROHM. 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¥1,773, 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..

However, before you get too enthused, we've discovered 3 warning signs for ROHM (1 doesn't sit too well with us!) that you should be aware of.

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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.