Analyst Estimates: Here's What Brokers Think Of Hamamatsu Photonics K.K. (TSE:6965) After Its Interim Report

It's been a pretty great week for Hamamatsu Photonics K.K. (TSE:6965) shareholders, with its shares surging 12% to JP¥1,520 in the week since its latest half-year results. Results were roughly in line with estimates, with revenues of JP¥107b and statutory earnings per share of JP¥81.19. 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 Hamamatsu Photonics K.K after the latest results.

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Following the latest results, Hamamatsu Photonics K.K's nine analysts are now forecasting revenues of JP¥216.5b in 2025. This would be a satisfactory 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 2.4% to JP¥59.79 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥215.0b and earnings per share (EPS) of JP¥64.29 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.

See our latest analysis for Hamamatsu Photonics K.K

The consensus price target held steady at JP¥2,106, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Hamamatsu Photonics K.K analyst has a price target of JP¥3,400 per share, while the most pessimistic values it at JP¥1,350. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 9.7% growth on an annualised basis. That is in line with its 9.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.3% annually. So it's pretty clear that Hamamatsu Photonics K.K is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 Hamamatsu Photonics K.K analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Hamamatsu Photonics K.K 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.