Earnings Update: Iriso Electronics Co., Ltd. (TSE:6908) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

Investors in Iriso Electronics Co., Ltd. (TSE:6908) had a good week, as its shares rose 4.5% to close at JP¥3,225 following the release of its full-year results. Iriso Electronics reported JP¥55b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥238 beat expectations, being 4.3% higher than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Iriso Electronics

Taking into account the latest results, the current consensus from Iriso Electronics' five analysts is for revenues of JP¥57.6b in 2025. This would reflect a satisfactory 4.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to shrink 5.6% to JP¥225 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥57.5b and earnings per share (EPS) of JP¥243 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥4,686, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Iriso Electronics analyst has a price target of JP¥7,800 per share, while the most pessimistic values it at JP¥3,200. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Iriso Electronics' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.3% growth on an annualised basis. This is compared to a historical growth rate of 8.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Iriso Electronics.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Iriso Electronics. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Iriso Electronics' 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.

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. We have estimates - from multiple Iriso Electronics analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Iriso Electronics that you need to be mindful 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.