Japan Aviation Electronics Industry, Limited Just Missed EPS By 67%: Here's What Analysts Think Will Happen Next

As you might know, Japan Aviation Electronics Industry, Limited (TSE:6807) last week released its latest quarterly, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at JP¥52b, statutory earnings missed forecasts by an incredible 67%, coming in at just JP¥12.70 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 eight analysts is for revenues of JP¥228.8b in 2026. This would reflect a satisfactory 5.1% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 29% to JP¥178. Before this earnings report, the analysts had been forecasting revenues of JP¥230.2b and earnings per share (EPS) of JP¥188 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for Japan Aviation Electronics Industry

The consensus price target held steady at JP¥2,723, 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¥3,100 and the most bearish at JP¥2,500 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 6.9% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Japan Aviation Electronics Industry is expected to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

You can also see our analysis of Japan Aviation Electronics Industry's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.