Daikin Industries,Ltd. Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next
As you might know, Daikin Industries,Ltd. (TSE:6367) just kicked off its latest interim results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 9.7% to hit JP¥2.9t. Daikin IndustriesLtd reported statutory earnings per share (EPS) JP¥332, which was a notable 13% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following last week's earnings report, Daikin IndustriesLtd's 15 analysts are forecasting 2027 revenues to be JP¥5.36t, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 3.5% to JP¥996 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥5.36t and earnings per share (EPS) of JP¥996 in 2027. 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 Daikin IndustriesLtd
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥24,638. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Daikin IndustriesLtd at JP¥28,800 per share, while the most bearish prices it at JP¥20,700. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Daikin IndustriesLtd's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 3.2% annualised decline to the end of 2027. That is a notable change from historical growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.2% annually for the foreseeable future. It's pretty clear that Daikin IndustriesLtd's revenues are expected to perform substantially worse 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Daikin IndustriesLtd going out to 2029, and you can see them free on our platform here.
You can also see whether Daikin IndustriesLtd is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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