Murata Manufacturing Co., Ltd. (TSE:6981) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

There's been a notable change in appetite for Murata Manufacturing Co., Ltd. (TSE:6981) shares in the week since its full-year report, with the stock down 10% to JP¥1,991. It looks like the results were a bit of a negative overall. While revenues of JP¥1.7t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.0% to hit JP¥125 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Murata Manufacturing's 16 analysts currently expect revenues in 2026 to be JP¥1.77t, approximately in line with the last 12 months. Statutory per share are forecast to be JP¥127, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.83t and earnings per share (EPS) of JP¥147 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

Check out our latest analysis for Murata Manufacturing

Despite the cuts to forecast earnings, there was no real change to the JP¥3,111 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Murata Manufacturing at JP¥3,600 per share, while the most bearish prices it at JP¥2,500. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We can infer from the latest estimates that forecasts expect a continuation of Murata Manufacturing'shistorical trends, as the 1.4% annualised revenue growth to the end of 2026 is roughly in line with the 1.2% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.4% annually. So although Murata Manufacturing is expected to maintain its revenue growth rate, it's forecast 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 Murata Manufacturing. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥3,111, 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 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.