HORIBA, Ltd. Just Beat EPS By 18%: Here's What Analysts Think Will Happen Next

HORIBA, Ltd. (TSE:6856) just released its latest third-quarter results and things are looking bullish. HORIBA beat earnings, with revenues hitting JP¥81b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 18%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HORIBA after the latest results.

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Taking into account the latest results, the consensus forecast from HORIBA's six analysts is for revenues of JP¥340.4b in 2026. This reflects a reasonable 2.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 6.7% to JP¥960. In the lead-up to this report, the analysts had been modelling revenues of JP¥339.0b and earnings per share (EPS) of JP¥952 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 HORIBA

There were no changes to revenue or earnings estimates or the price target of JP¥13,750, suggesting that the company has met expectations in its recent result. 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 HORIBA at JP¥15,500 per share, while the most bearish prices it at JP¥11,500. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting HORIBA is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's pretty clear that there is an expectation that HORIBA's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 12% 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 6.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that HORIBA 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 HORIBA'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 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 HORIBA going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for HORIBA you should know about.

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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.