Yokogawa Electric Corporation Just Missed Earnings - But Analysts Have Updated Their Models

There's been a notable change in appetite for Yokogawa Electric Corporation (TSE:6841) shares in the week since its quarterly report, with the stock down 11% to JP¥3,278. Revenues of JP¥129b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥38.65, missing estimates by 6.2%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Yokogawa Electric

Taking into account the latest results, the consensus forecast from Yokogawa Electric's seven analysts is for revenues of JP¥561.6b in 2025. This reflects a credible 2.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 11% to JP¥201. Before this earnings report, the analysts had been forecasting revenues of JP¥561.3b and earnings per share (EPS) of JP¥200 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.

The analysts reconfirmed their price target of JP¥4,417, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Yokogawa Electric at JP¥5,000 per share, while the most bearish prices it at JP¥3,900. 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.

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. We would highlight that Yokogawa Electric's revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2025 being well below the historical 6.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Yokogawa Electric is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Yokogawa Electric's revenue is expected to 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Yokogawa Electric. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Yokogawa Electric going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Yokogawa Electric has 1 warning sign we think you should be aware of.

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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.