Aiphone Co.,Ltd. Just Recorded A 23% EPS Beat: Here's What Analysts Are Forecasting Next

The annual results for Aiphone Co.,Ltd. (TSE:6718) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of JP¥61b were what the analyst expected, AiphoneLtd surprised by delivering a (statutory) profit of JP¥284 per share, an impressive 23% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for AiphoneLtd

After the latest results, the lone analyst covering AiphoneLtd are now predicting revenues of JP¥63.0b in 2025. If met, this would reflect a modest 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to fall 16% to JP¥238 in the same period. In the lead-up to this report, the analyst had been modelling revenues of JP¥61.2b and earnings per share (EPS) of JP¥233 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades, the consensus price target fell 5.2% to JP¥3,130, perhaps signalling that the uplift in performance is not expected to last.

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 AiphoneLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 5.3% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 20% per year. Factoring in the forecast slowdown in growth, it seems obvious that AiphoneLtd is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards AiphoneLtd following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of AiphoneLtd's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on AiphoneLtd. Long-term earnings power is much more important than next year's profits. We have analyst estimates for AiphoneLtd going out as far as 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 AiphoneLtd 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.