Taiyo Yuden Co., Ltd. Just Missed Earnings; Here's What Analysts Are Forecasting Now

Shareholders might have noticed that Taiyo Yuden Co., Ltd. (TSE:6976) filed its quarterly result this time last week. The early response was not positive, with shares down 4.3% to JP¥2,733 in the past week. Things were not great overall, with a surprise (statutory) loss of JP¥7.02 per share on revenues of JP¥85b, even though the analysts had been expecting a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, Taiyo Yuden's 15 analysts currently expect revenues in 2026 to be JP¥346.4b, approximately in line with the last 12 months. Taiyo Yuden is also expected to turn profitable, with statutory earnings of JP¥83.82 per share. Before this earnings report, the analysts had been forecasting revenues of JP¥345.7b and earnings per share (EPS) of JP¥82.46 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Taiyo Yuden

The analysts reconfirmed their price target of JP¥2,616, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Taiyo Yuden at JP¥3,600 per share, while the most bearish prices it at JP¥1,700. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 pretty clear that there is an expectation that Taiyo Yuden's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.5% growth on an annualised basis. This is compared to a historical growth rate of 2.4% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Taiyo Yuden.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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¥2,616, 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 2028, and you can see them free on our platform here..

Even so, be aware that Taiyo Yuden is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

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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.