Iriso Electronics Co., Ltd. Just Recorded A 91% EPS Beat: Here's What Analysts Are Forecasting Next

Iriso Electronics Co., Ltd. (TSE:6908) defied analyst predictions to release its interim results, which were ahead of market expectations. The company beat forecasts, with revenue of JP¥31b, some 6.8% above estimates, and statutory earnings per share (EPS) coming in at JP¥73.57, 91% ahead of expectations. 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 Iriso Electronics after the latest results.

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.

Following the recent earnings report, the consensus from seven analysts covering Iriso Electronics is for revenues of JP¥58.1b in 2026. This implies a noticeable 3.5% decline in revenue compared to the last 12 months. Per-share earnings are expected to climb 13% to JP¥193. In the lead-up to this report, the analysts had been modelling revenues of JP¥57.5b and earnings per share (EPS) of JP¥187 in 2026. So the consensus seems to have become somewhat more optimistic on Iriso Electronics' earnings potential following these results.

View our latest analysis for Iriso Electronics

There's been no major changes to the consensus price target of JP¥2,873, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Iriso Electronics at JP¥3,200 per share, while the most bearish prices it at JP¥2,600. 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.8% by the end of 2026. This indicates a significant reduction from annual growth of 10.0% 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 6.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Iriso Electronics is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Iriso Electronics' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥2,873, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Iriso Electronics going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Iriso Electronics .

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.