Oki Electric Industry Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Oki Electric Industry Co., Ltd. (TSE:6703) had a good week, as its shares rose 3.0% to close at JP¥1,593 following the release of its annual results. It looks like a credible result overall - although revenues of JP¥452b were what the analysts expected, Oki Electric Industry surprised by delivering a (statutory) profit of JP¥144 per share, an impressive 28% above what was forecast. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, Oki Electric Industry's dual analysts are forecasting 2026 revenues to be JP¥450.4b, approximately in line with the last 12 months. Per-share earnings are expected to ascend 13% to JP¥162. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥450.0b and earnings per share (EPS) of JP¥162 in 2026. 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.

See our latest analysis for Oki Electric Industry

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 36% to JP¥1,900. It looks as though they previously had some doubts over whether the business would live up to their expectations.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.5% by the end of 2026. This indicates a significant reduction from annual growth of 1.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Oki Electric Industry is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Oki Electric Industry's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

You still need to take note of risks, for example - Oki Electric Industry has 4 warning signs we think 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.