Here's What Analysts Are Forecasting For Murata Manufacturing Co., Ltd. (TSE:6981) After Its Third-Quarter Results

As you might know, Murata Manufacturing Co., Ltd. (TSE:6981) last week released its latest third-quarter, and things did not turn out so great for shareholders. Murata Manufacturing missed analyst forecasts, with revenues of JP¥448b and statutory earnings per share (EPS) of JP¥38.11, falling short by 2.6% and 4.3% respectively. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Murata Manufacturing

After the latest results, the 17 analysts covering Murata Manufacturing are now predicting revenues of JP¥1.86t in 2026. If met, this would reflect a notable 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 40% to JP¥156. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.87t and earnings per share (EPS) of JP¥158 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,484. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Murata Manufacturing at JP¥5,500 per share, while the most bearish prices it at JP¥2,700. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Murata Manufacturing's growth to accelerate, with the forecast 6.4% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Murata Manufacturing 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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥3,484, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Murata Manufacturing. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Murata Manufacturing going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Murata Manufacturing's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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.