Hirose Electric Co.,Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, Hirose Electric Co.,Ltd. (TSE:6806) just kicked off its latest half-yearly results with some very strong numbers. The company beat forecasts, with revenue of JP¥95b, some 7.0% above estimates, and statutory earnings per share (EPS) coming in at JP¥518, 34% ahead of expectations. 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.

View our latest analysis for Hirose ElectricLtd

Taking into account the latest results, the current consensus from Hirose ElectricLtd's 14 analysts is for revenues of JP¥181.3b in 2025. This would reflect a satisfactory 2.4% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 4.0% to JP¥891 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥179.4b and earnings per share (EPS) of JP¥885 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.

The analysts reconfirmed their price target of JP¥21,343, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Hirose ElectricLtd at JP¥26,000 per share, while the most bearish prices it at JP¥16,900. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hirose ElectricLtd's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Hirose ElectricLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.8% growth on an annualised basis. This is compared to a historical growth rate of 8.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Hirose ElectricLtd is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥21,343, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Hirose ElectricLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hirose ElectricLtd analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Hirose ElectricLtd has 1 warning sign 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.