Japan Aviation Electronics Industry, Limited (TSE:6807) Just Released Its Interim Earnings: Here's What Analysts Think

Investors in Japan Aviation Electronics Industry, Limited (TSE:6807) had a good week, as its shares rose 3.5% to close at JP¥2,715 following the release of its half-yearly results. The result was positive overall - although revenues of JP¥113b were in line with what the analysts predicted, Japan Aviation Electronics Industry surprised by delivering a statutory profit of JP¥98.45 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Japan Aviation Electronics Industry

Taking into account the latest results, the current consensus from Japan Aviation Electronics Industry's nine analysts is for revenues of JP¥230.5b in 2025. This would reflect an okay 2.0% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 3.0% to JP¥186. Before this earnings report, the analysts had been forecasting revenues of JP¥230.1b and earnings per share (EPS) of JP¥182 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 was unchanged at JP¥2,827, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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¥3,150 and the most bearish at JP¥2,600 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Japan Aviation Electronics Industry's growth to accelerate, with the forecast 4.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.8% per annum 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 7.1% per year. So it's clear that despite the acceleration in growth, Japan Aviation Electronics Industry is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Japan Aviation Electronics Industry following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥2,827, with the latest estimates not enough to have an impact on their price targets.

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 2027, 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.