Taiyo Yuden Co., Ltd. Just Beat EPS By 41%: Here's What Analysts Think Will Happen Next

Shareholders will be ecstatic, with their stake up 25% over the past week following Taiyo Yuden Co., Ltd.'s (TSE:6976) latest quarterly results. It looks like a credible result overall - although revenues of JP¥87b were what the analysts expected, Taiyo Yuden surprised by delivering a (statutory) profit of JP¥36.88 per share, an impressive 41% above what was forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Taiyo Yuden

After the latest results, the 15 analysts covering Taiyo Yuden are now predicting revenues of JP¥356.4b in 2026. If met, this would reflect a modest 6.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 14% to JP¥117. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥357.1b and earnings per share (EPS) of JP¥124 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The average price target fell 14% to JP¥2,726, with reduced earnings forecasts clearly tied to a lower valuation estimate. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Taiyo Yuden, with the most bullish analyst valuing it at JP¥4,100 and the most bearish at JP¥1,700 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Taiyo Yuden's growth to accelerate, with the forecast 4.9% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.2% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Taiyo Yuden is expected to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Taiyo Yuden. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Taiyo Yuden's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Taiyo Yuden. Long-term earnings power is much more important than next year's profits. We have forecasts for Taiyo Yuden going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Taiyo Yuden (1 shouldn't be ignored!) that we have uncovered.

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.