Hirose Electric Co.,Ltd. (TSE:6806) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Hirose Electric Co.,Ltd. (TSE:6806) had a good week, as its shares rose 6.5% to close at JP¥17,540 following the release of its full-year results. Results were roughly in line with estimates, with revenues of JP¥189b and statutory earnings per share of JP¥976. 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.

We've discovered 1 warning sign about Hirose ElectricLtd. View them for free.

Following the latest results, Hirose ElectricLtd's twelve analysts are now forecasting revenues of JP¥196.9b in 2026. This would be an okay 4.0% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥963, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥198.5b and earnings per share (EPS) of JP¥994 in 2026. 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.

See our latest analysis for Hirose ElectricLtd

The consensus price target held steady at JP¥21,283, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Hirose ElectricLtd analyst has a price target of JP¥25,500 per share, while the most pessimistic values it at JP¥18,400. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 2026 expected to display 4.0% growth on an annualised basis. This is compared to a historical growth rate of 8.0% 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 6.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Hirose ElectricLtd.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hirose ElectricLtd. 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. We have forecasts for Hirose ElectricLtd going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Hirose ElectricLtd that we have uncovered.

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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.