Analyst Estimates: Here's What Brokers Think Of Elecom Co., Ltd. (TSE:6750) After Its First-Quarter Report

There's been a notable change in appetite for Elecom Co., Ltd. (TSE:6750) shares in the week since its first-quarter report, with the stock down 12% to JP¥1,802. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥29b, statutory earnings were in line with expectations, at JP¥119 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Elecom's five analysts is for revenues of JP¥128.0b in 2026. This reflects a reasonable 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 33% to JP¥139. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥128.3b and earnings per share (EPS) of JP¥141 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 Elecom

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,140. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Elecom at JP¥2,500 per share, while the most bearish prices it at JP¥1,900. This is a very narrow spread of estimates, implying either that Elecom is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Elecom's past performance and to peers in the same industry. It's clear from the latest estimates that Elecom's rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Elecom to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Elecom going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Elecom that you need to be mindful 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.