Mitsui High-tec, Inc. Just Missed EPS By 21%: 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 8.6% to JP¥858 in the week after its latest half-year results. Revenue of JP¥54b surpassed estimates by 2.2%, although statutory earnings per share missed badly, coming in 21% below expectations at JP¥12.58 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Mitsui High-tec

Taking into account the latest results, the current consensus from Mitsui High-tec's six analysts is for revenues of JP¥218.2b in 2025. This would reflect a reasonable 5.8% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to plunge 28% to JP¥58.56 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥227.2b and earnings per share (EPS) of JP¥81.22 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the JP¥1,833 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic 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. Currently, the most bullish analyst values Mitsui High-tec at JP¥1,900 per share, while the most bearish prices it at JP¥1,800. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. It's pretty clear that there is an expectation that Mitsui High-tec's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this to the 58 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. So it's pretty clear that, while Mitsui High-tec's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Mitsui High-tec. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at JP¥1,833, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates 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 2 warning signs for Mitsui High-tec that you should be aware of.

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.