Earnings Miss: Japan Aviation Electronics Industry, Limited Missed EPS By 11% And Analysts Are Revising Their Forecasts

It's been a good week for Japan Aviation Electronics Industry, Limited (TSE:6807) shareholders, because the company has just released its latest annual results, and the shares gained 8.7% to JP¥2,487. It was not a great result overall. While revenues of JP¥226b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 11% to hit JP¥137 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Japan Aviation Electronics Industry

Following last week's earnings report, Japan Aviation Electronics Industry's seven analysts are forecasting 2025 revenues to be JP¥229.2b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 9.1% to JP¥165 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥231.0b and earnings per share (EPS) of JP¥151 in 2025. So the consensus seems to have become somewhat more optimistic on Japan Aviation Electronics Industry's earnings potential following these results.

The consensus price target rose 5.3% to JP¥2,744, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Japan Aviation Electronics Industry, with the most bullish analyst valuing it at JP¥3,600 and the most bearish at JP¥1,710 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Japan Aviation Electronics Industry's past performance and to peers in the same industry. We would highlight that Japan Aviation Electronics Industry's revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2025 being well below the historical 2.6% 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 7.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Japan Aviation Electronics Industry is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Japan Aviation Electronics Industry's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Japan Aviation Electronics Industry's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Japan Aviation Electronics Industry analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Japan Aviation Electronics Industry is showing 1 warning sign in our investment analysis , 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.