Earnings Update: Amano Corporation (TSE:6436) Just Reported Its Half-Yearly Results And Analysts Are Updating Their Forecasts

As you might know, Amano Corporation (TSE:6436) recently reported its half-yearly numbers. Results were roughly in line with estimates, with revenues of JP¥84b and statutory earnings per share of JP¥250. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Amano's two analysts is for revenues of JP¥179.2b in 2026. This would reflect an okay 2.3% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 3.2% to JP¥254. Before this earnings report, the analysts had been forecasting revenues of JP¥180.2b and earnings per share (EPS) of JP¥248 in 2026. So the consensus seems to have become somewhat more optimistic on Amano's earnings potential following these results.

See our latest analysis for Amano

There's been no major changes to the consensus price target of JP¥4,700, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Amano's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Amano is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Amano's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Amano's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 analyst estimates for Amano going out as far as 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Amano 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.