The Shimadzu Corporation (TSE:7701) First-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a good week for Shimadzu Corporation (TSE:7701) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.3% to JP¥4,442. It was a workmanlike result, with revenues of JP¥117b coming in 4.0% ahead of expectations, and statutory earnings per share of JP¥194, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Shimadzu

After the latest results, the ten analysts covering Shimadzu are now predicting revenues of JP¥532.8b in 2025. If met, this would reflect an okay 2.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.3% to JP¥198. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥533.7b and earnings per share (EPS) of JP¥199 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.

The analysts reconfirmed their price target of JP¥5,025, showing that the business is executing well and in line with expectations. 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 Shimadzu at JP¥5,700 per share, while the most bearish prices it at JP¥4,500. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Shimadzu is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's pretty clear that there is an expectation that Shimadzu's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 7.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.1% annually. 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 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. 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. At Simply Wall St, we have a full range of analyst estimates for Shimadzu going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.