Azbil Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Azbil Corporation (TSE:6845) filed its interim result this time last week. The early response was not positive, with shares down 5.2% to JP¥1,444 in the past week. It looks like a credible result overall - although revenues of JP¥133b were what the analysts expected, Azbil surprised by delivering a (statutory) profit of JP¥16.29 per share, an impressive 26% above what was forecast. 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.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, Azbil's five analysts currently expect revenues in 2026 to be JP¥295.6b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dive 24% to JP¥65.45 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥295.7b and earnings per share (EPS) of JP¥65.11 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Azbil

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,540. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Azbil, with the most bullish analyst valuing it at JP¥1,700 and the most bearish at JP¥1,300 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Azbil's revenue growth is expected to slow, with the forecast 1.1% annualised growth rate until the end of 2026 being well below the historical 4.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.6% 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 Azbil.

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. 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 Azbil going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - Azbil has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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

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.