HOYA Corporation Just Beat EPS By 8.6%: Here's What Analysts Think Will Happen Next
As you might know, HOYA Corporation (TSE:7741) just kicked off its latest first-quarter results with some very strong numbers. The company beat expectations with revenues of JP¥256b arriving 3.8% ahead of forecasts. Statutory earnings per share (EPS) were JP¥197, 8.6% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, HOYA's 15 analysts are now forecasting revenues of JP¥1.03t in 2027. This would be a credible 5.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 2.0% to JP¥814. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.03t and earnings per share (EPS) of JP¥793 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 HOYA
The consensus price target was unchanged at JP¥30,380, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic HOYA analyst has a price target of JP¥35,000 per share, while the most pessimistic values it at JP¥23,100. 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.
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 HOYA's revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2027 being well below the historical 9.1% p.a. growth over the last five years. Compare this to the 36 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it looks like HOYA is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HOYA following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥30,380, with the latest estimates not enough to have an impact on their price targets.
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 HOYA going out to 2029, and you can see them free on our platform here.
You can also see our analysis of HOYA's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.