Mitsui High-tec, Inc. Just Beat EPS By 9.5%: Here's What Analysts Think Will Happen Next

Mitsui High-tec, Inc. (TSE:6966) shareholders are probably feeling a little disappointed, since its shares fell 5.6% to JP¥9,040 in the week after its latest annual results. Mitsui High-tec reported JP¥196b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥425 beat expectations, being 9.5% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Mitsui High-tec

Taking into account the latest results, the most recent consensus for Mitsui High-tec from five analysts is for revenues of JP¥235.7b in 2025. If met, it would imply a substantial 20% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 3.2% to JP¥439. Before this earnings report, the analysts had been forecasting revenues of JP¥231.4b and earnings per share (EPS) of JP¥443 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.5% to JP¥9,333. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Mitsui High-tec analyst has a price target of JP¥11,500 per share, while the most pessimistic values it at JP¥8,000. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Mitsui High-tec'shistorical trends, as the 20% annualised revenue growth to the end of 2025 is roughly in line with the 21% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So it's pretty clear that Mitsui High-tec is forecast to grow substantially faster than its industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Mitsui High-tec going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Mitsui High-tec 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.