Hitachi, Ltd. (TSE:6501) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

The annual results for Hitachi, Ltd. (TSE:6501) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of JP¥11t and statutory earnings per share of JP¥177 both in line with analyst estimates, showing that Hitachi is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. After the latest results, the 13 analysts covering Hitachi are now predicting revenues of JP¥11t in 2027. If met, this would reflect a satisfactory 6.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 15% to JP¥206. In the lead-up to this report, the analysts had been modelling revenues of JP¥11t and earnings per share (EPS) of JP¥211 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts. View our latest analysis for Hitachi The consensus price target held steady at JP¥5,900, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Hitachi analyst has a price target of JP¥6,700 per share, while the most pessimistic values it at JP¥4,600. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hitachi's past performance and to peers in the same industry. The analysts are definitely expecting Hitachi's growth to accelerate, with the forecast 6.7% annualised growth to the end of 2027 ranking favourably alongside historical growth of 0.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hitachi is expected to grow at about the same rate as the wider industry. The Bottom Line The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥5,900, 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 estimates - from multiple Hitachi analysts - going out to 2029, and you can see them free on our platform here. You can also see our analysis of Hitachi's Board and CEO remuneration and experience, and whether company insiders have been buying stock.