Results: Japan Aviation Electronics Industry, Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders might have noticed that Japan Aviation Electronics Industry, Limited (TSE:6807) filed its first-quarter result this time last week. The early response was not positive, with shares down 9.0% to JP¥2,475 in the past week. Revenues were JP¥56b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥46.56 were also better than expected, beating analyst predictions by 12%. 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. 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 last week's earnings report, Japan Aviation Electronics Industry's eight analysts are forecasting 2025 revenues to be JP¥231.1b, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 2.0% to JP¥187 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥229.9b and earnings per share (EPS) of JP¥172 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥2,930, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Japan Aviation Electronics Industry analyst has a price target of JP¥3,300 per share, while the most pessimistic values it at JP¥2,700. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's pretty clear that there is an expectation that Japan Aviation Electronics Industry's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.9% growth on an annualised basis. This is compared to a historical growth rate of 2.9% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Japan Aviation Electronics Industry.

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. 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. The consensus price target held steady at JP¥2,930, 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. 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..

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com