Taiyo Yuden Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Taiyo Yuden Co., Ltd. (TSE:6976) missed earnings with its latest half-yearly results, disappointing overly-optimistic forecasters. Unfortunately, Taiyo Yuden delivered a serious earnings miss. Revenues of JP¥168b were 13% below expectations, and statutory earnings per share of JP¥28.61 missed estimates by 63%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Taiyo Yuden

Taking into account the latest results, the most recent consensus for Taiyo Yuden from 16 analysts is for revenues of JP¥345.4b in 2025. If met, it would imply a modest 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 77% to JP¥120. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥348.8b and earnings per share (EPS) of JP¥137 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The average price target fell 6.6% to JP¥3,898, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. The most optimistic Taiyo Yuden analyst has a price target of JP¥9,500 per share, while the most pessimistic values it at JP¥2,200. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on 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. It's clear from the latest estimates that Taiyo Yuden's rate of growth is expected to accelerate meaningfully, with the forecast 6.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.3% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.4% per year. 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Taiyo Yuden analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Taiyo Yuden has 2 warning signs we think 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.