Anritsu Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for Anritsu Corporation (TSE:6754) shareholders, because the company has just released its latest half-yearly results, and the shares gained 4.5% to JP¥1,152. Statutory earnings per share fell badly short of expectations, coming in at JP¥11.55, some 27% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at JP¥53b. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Anritsu

Following last week's earnings report, Anritsu's nine analysts are forecasting 2025 revenues to be JP¥114.1b, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 12% to JP¥60.48. Before this earnings report, the analysts had been forecasting revenues of JP¥114.3b and earnings per share (EPS) of JP¥62.32 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥1,165, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Anritsu, with the most bullish analyst valuing it at JP¥1,550 and the most bearish at JP¥920 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Anritsu's rate of growth is expected to accelerate meaningfully, with the forecast 3.1% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.3% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Anritsu is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Anritsu going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Anritsu you should know about.

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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.