Earnings Report: Aiphone Co.,Ltd. Missed Revenue Estimates By 7.1%

Aiphone Co.,Ltd. (TSE:6718) shareholders are probably feeling a little disappointed, since its shares fell 2.8% to JP¥2,837 in the week after its latest half-yearly results. Revenues came in 7.1% below expectations, at JP¥15b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥284 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 AiphoneLtd

After the latest results, the twin analysts covering AiphoneLtd are now predicting revenues of JP¥63.5b in 2025. If met, this would reflect a credible 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.1% to JP¥235. In the lead-up to this report, the analysts had been modelling revenues of JP¥63.2b and earnings per share (EPS) of JP¥238 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With no major changes to earnings forecasts, the consensus price target fell 6.1% to JP¥2,940, suggesting that the analysts might have previously been hoping for an earnings upgrade.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AiphoneLtd's past performance and to peers in the same industry. We would highlight that AiphoneLtd's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2025 being well below the historical 6.3% p.a. growth over the last 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 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 2027, which can be seen for free on our platform here.

You can also see our analysis of AiphoneLtd's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.