Harmonic Drive Systems Inc. (TSE:6324) Half-Yearly Results: Here's What Analysts Are Forecasting For This Year
Shareholders of Harmonic Drive Systems Inc. (TSE:6324) will be pleased this week, given that the stock price is up 12% to JP¥4,775 following its latest half-yearly results. Results were roughly in line with estimates, with revenues of JP¥19b and statutory earnings per share of JP¥16.99. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the ten analysts covering Harmonic Drive Systems are now predicting revenues of JP¥74.7b in 2027. If met, this would reflect a solid 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 58% to JP¥71.20. In the lead-up to this report, the analysts had been modelling revenues of JP¥75.5b and earnings per share (EPS) of JP¥69.64 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Harmonic Drive Systems
There's been no major changes to the consensus price target of JP¥7,497, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Harmonic Drive Systems at JP¥10,000 per share, while the most bearish prices it at JP¥3,300. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. It's clear from the latest estimates that Harmonic Drive Systems' rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 0.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Harmonic Drive Systems to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Harmonic Drive Systems' earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.
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. At Simply Wall St, we have a full range of analyst estimates for Harmonic Drive Systems going out to 2029, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Harmonic Drive Systems .
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