Results: Murata Manufacturing Co., Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

Murata Manufacturing Co., Ltd. (TSE:6981) just released its quarterly report and things are looking bullish. Murata Manufacturing beat earnings, with revenues hitting JP¥422b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Murata Manufacturing

Following the latest results, Murata Manufacturing's 17 analysts are now forecasting revenues of JP¥1.78t in 2025. This would be an okay 5.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 37% to JP¥144. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.77t and earnings per share (EPS) of JP¥143 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥3,975, suggesting that the company has met expectations in its recent result. 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. The most optimistic Murata Manufacturing analyst has a price target of JP¥5,500 per share, while the most pessimistic values it at JP¥3,000. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Murata Manufacturing's rate of growth is expected to accelerate meaningfully, with the forecast 6.9% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. Murata Manufacturing is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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¥3,975, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Murata Manufacturing analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Murata Manufacturing Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com