Analysts Are Updating Their Shimadzu Corporation (TSE:7701) Estimates After Its Half-Yearly Results

As you might know, Shimadzu Corporation (TSE:7701) recently reported its half-year numbers. Shimadzu reported JP¥256b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥81.79 beat expectations, being 2.9% higher than what the analysts expected. 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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Following last week's earnings report, Shimadzu's eleven analysts are forecasting 2026 revenues to be JP¥547.5b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 6.4% to JP¥182 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥545.2b and earnings per share (EPS) of JP¥178 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.

View our latest analysis for Shimadzu

There were no changes to revenue or earnings estimates or the price target of JP¥4,652, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Shimadzu, with the most bullish analyst valuing it at JP¥5,600 and the most bearish at JP¥3,600 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Shimadzu's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.2% growth on an annualised basis. This is compared to a historical growth rate of 7.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Shimadzu.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shimadzu's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Shimadzu. Long-term earnings power is much more important than next year's profits. We have forecasts for Shimadzu going out to 2028, and you can see them free on our platform here.

We also provide an overview of the Shimadzu 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.