Japan Aviation Electronics Industry, Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a mediocre week for Japan Aviation Electronics Industry, Limited (TSE:6807) shareholders, with the stock dropping 17% to JP¥2,307 in the week since its latest half-year results. Revenue of JP¥59b surpassed estimates by 2.2%, although statutory earnings per share missed badly, coming in 40% below expectations at JP¥33.53 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.

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Taking into account the latest results, the current consensus from Japan Aviation Electronics Industry's nine analysts is for revenues of JP¥223.7b in 2026. This would reflect a reasonable 2.3% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 27% to JP¥152. In the lead-up to this report, the analysts had been modelling revenues of JP¥226.2b and earnings per share (EPS) of JP¥159 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.

Check out our latest analysis for Japan Aviation Electronics Industry

The consensus price target held steady at JP¥2,644, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Japan Aviation Electronics Industry, with the most bullish analyst valuing it at JP¥3,000 and the most bearish at JP¥2,500 per share. This is a very narrow spread of estimates, implying either that Japan Aviation Electronics Industry is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 Japan Aviation Electronics Industry's rate of growth is expected to accelerate meaningfully, with the forecast 4.7% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.8% 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 6.6% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Japan Aviation Electronics Industry is expected to grow slower than the wider industry.

The Bottom Line

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

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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.