Meidensha Corporation (TSE:6508) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

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It's been a good week for Meidensha Corporation (TSE:6508) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.6% to JP¥5,710. It was a credible result overall, with revenues of JP¥58b and statutory earnings per share of JP¥408 both in line with analyst estimates, showing that Meidensha is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Meidensha after the latest results.

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Taking into account the latest results, the consensus forecast from Meidensha's five analysts is for revenues of JP¥328.5b in 2026. This reflects a satisfactory 7.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 6.5% to JP¥370 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥328.6b and earnings per share (EPS) of JP¥363 in 2026. 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.

Check out our latest analysis for Meidensha

There were no changes to revenue or earnings estimates or the price target of JP¥6,160, suggesting that the company has met expectations in its recent result. 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 Meidensha analyst has a price target of JP¥7,200 per share, while the most pessimistic values it at JP¥5,000. 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.

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. The analysts are definitely expecting Meidensha's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Meidensha to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Meidensha analysts - 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 Meidensha you should be aware of.