Results: Taiyo Yuden Co., Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders might have noticed that Taiyo Yuden Co., Ltd. (TSE:6976) filed its full-year result this time last week. The early response was not positive, with shares down 9.8% to JP¥3,250 in the past week. Revenues were JP¥323b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥66.75, an impressive 22% ahead of estimates. 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. 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 Taiyo Yuden

Taking into account the latest results, the most recent consensus for Taiyo Yuden from 14 analysts is for revenues of JP¥349.9b in 2025. If met, it would imply a decent 8.4% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 129% to JP¥153. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥350.0b and earnings per share (EPS) of JP¥170 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

The consensus price target held steady at JP¥4,143, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Taiyo Yuden at JP¥5,000 per share, while the most bearish prices it at JP¥3,000. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Taiyo Yuden's past performance and to peers in the same industry. It's clear from the latest estimates that Taiyo Yuden's rate of growth is expected to accelerate meaningfully, with the forecast 8.4% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Taiyo Yuden is expected to grow at about the same rate as the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥4,143, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Taiyo Yuden going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Taiyo Yuden (1 shouldn't be ignored!) that you should be aware of.

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.