WEBULL

Shin-Etsu Chemical Co., Ltd. (TSE:4063) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Simply Wall St · 07/26 23:21

Shareholders might have noticed that Shin-Etsu Chemical Co., Ltd. (TSE:4063) filed its first-quarter result this time last week. The early response was not positive, with shares down 3.2% to JP¥4,530 in the past week. It was a credible result overall, with revenues of JP¥629b and statutory earnings per share of JP¥270 both in line with analyst estimates, showing that Shin-Etsu Chemical is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

earnings-and-revenue-growth
TSE:4063 Earnings and Revenue Growth July 26th 2025

Taking into account the latest results, Shin-Etsu Chemical's 17 analysts currently expect revenues in 2026 to be JP¥2.62t, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 5.1% to JP¥290. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.62t and earnings per share (EPS) of JP¥290 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.

See our latest analysis for Shin-Etsu Chemical

There were no changes to revenue or earnings estimates or the price target of JP¥5,613, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Shin-Etsu Chemical analyst has a price target of JP¥6,200 per share, while the most pessimistic values it at JP¥4,600. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We would highlight that Shin-Etsu Chemical's revenue growth is expected to slow, with the forecast 1.3% annualised growth rate until the end of 2026 being well below the historical 12% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.0% 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 Shin-Etsu Chemical.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥5,613, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Shin-Etsu Chemical going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Shin-Etsu Chemical has 1 warning sign we think you should be aware of.