YASKAWA Electric Corporation (TSE:6506) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

One of the biggest stories of last week was how YASKAWA Electric Corporation (TSE:6506) shares plunged 21% in the week since its latest full-year results, closing yesterday at JP¥2,926. YASKAWA Electric reported JP¥538b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥219 beat expectations, being 2.3% higher than what the analysts expected. 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 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, the current consensus from YASKAWA Electric's 16 analysts is for revenues of JP¥566.8b in 2026. This would reflect an okay 5.4% increase on its revenue over the past 12 months. Statutory earnings per share are expected to descend 15% to JP¥187 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥577.1b and earnings per share (EPS) of JP¥194 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for YASKAWA Electric

The consensus price target held steady at JP¥4,832, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic YASKAWA Electric analyst has a price target of JP¥6,100 per share, while the most pessimistic values it at JP¥3,800. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the YASKAWA Electric's past performance and to peers in the same industry. It's pretty clear that there is an expectation that YASKAWA Electric's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 8.6% over the past five years. Compare this to the 257 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.7% per year. So it's pretty clear that, while YASKAWA Electric's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 YASKAWA Electric. 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 YASKAWA Electric going out to 2028, and you can see them free on our platform here. .

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with YASKAWA Electric (at least 1 which is significant) , and understanding them should be part of your investment process.

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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.