Japan Aviation Electronics Industry, Limited Just Missed EPS By 43%: Here's What Analysts Think Will Happen Next

Japan Aviation Electronics Industry, Limited (TSE:6807) just released its latest quarterly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at JP¥53b, statutory earnings missed forecasts by an incredible 43%, coming in at just JP¥30.99 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Japan Aviation Electronics Industry

Following the latest results, Japan Aviation Electronics Industry's eight analysts are now forecasting revenues of JP¥238.9b in 2026. This would be a decent 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 39% to JP¥210. In the lead-up to this report, the analysts had been modelling revenues of JP¥240.7b and earnings per share (EPS) of JP¥221 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.

The consensus price target held steady at JP¥2,873, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Japan Aviation Electronics Industry, with the most bullish analyst valuing it at JP¥3,150 and the most bearish at JP¥2,600 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Japan Aviation Electronics Industry's growth to accelerate, with the forecast 6.5% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. Japan Aviation Electronics Industry is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥2,873, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Japan Aviation Electronics Industry going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.