Iriso Electronics Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

The first-quarter results for Iriso Electronics Co., Ltd. (TSE:6908) were released last week, making it a good time to revisit its performance. Results were mixed, with revenues of JP¥15b exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were JP¥23.90 per share, -38% short of analyst expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the recent earnings report, the consensus from seven analysts covering Iriso Electronics is for revenues of JP¥56.1b in 2026. This implies a discernible 4.8% decline in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 45% to JP¥190. Before this earnings report, the analysts had been forecasting revenues of JP¥56.2b and earnings per share (EPS) of JP¥191 in 2026. 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.

See our latest analysis for Iriso Electronics

The analysts reconfirmed their price target of JP¥2,804, showing that the business is executing well and in line with expectations. 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 Iriso Electronics, with the most bullish analyst valuing it at JP¥3,000 and the most bearish at JP¥2,600 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 6.4% annualised decline to the end of 2026. That is a notable change from historical growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.2% annually for the foreseeable future. It's pretty clear that Iriso Electronics' revenues are expected to perform substantially worse than the wider 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. 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. The consensus price target held steady at JP¥2,804, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Iriso Electronics. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Iriso Electronics analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Iriso Electronics that 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.