Murata Manufacturing Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Murata Manufacturing Co., Ltd. (TSE:6981) just released its half-yearly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.5% to hit JP¥903b. Murata Manufacturing also reported a statutory profit of JP¥44.94, which was an impressive 37% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the recent earnings report, the consensus from 17 analysts covering Murata Manufacturing is for revenues of JP¥1.72t in 2026. This implies a discernible 2.4% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 8.0% to JP¥119 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.72t and earnings per share (EPS) of JP¥119 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.

Check out our latest analysis for Murata Manufacturing

There were no changes to revenue or earnings estimates or the price target of JP¥3,247, suggesting that the company has met expectations in its recent result. 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 Murata Manufacturing at JP¥4,060 per share, while the most bearish prices it at JP¥2,400. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Murata Manufacturing shareholders.

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. We would highlight that revenue is expected to reverse, with a forecast 4.7% annualised decline to the end of 2026. That is a notable change from historical growth of 0.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Murata Manufacturing is expected to lag the wider industry.

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¥3,247, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Murata Manufacturing going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Murata Manufacturing 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.