Earnings Miss: Maxell, Ltd. Missed EPS By 45% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that Maxell, Ltd. (TSE:6810) filed its interim result this time last week. The early response was not positive, with shares down 6.3% to JP¥1,704 in the past week. Statutory earnings per share fell badly short of expectations, coming in at JP¥20.65, some 45% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at JP¥32b. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Maxell

Taking into account the latest results, the most recent consensus for Maxell from six analysts is for revenues of JP¥129.4b in 2025. If met, it would imply a satisfactory 2.2% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 14% to JP¥150. In the lead-up to this report, the analysts had been modelling revenues of JP¥129.9b and earnings per share (EPS) of JP¥152 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of JP¥1,917, suggesting that the company has met expectations in its recent result. 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 Maxell analyst has a price target of JP¥2,400 per share, while the most pessimistic values it at JP¥1,600. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Maxell's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.3% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.3% per year. So although Maxell's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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.

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 Maxell going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Maxell .

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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.