News Flash: 3 Analysts Think Press Kogyo Co., Ltd. (TSE:7246) Earnings Are Under Threat

Market forces rained on the parade of Press Kogyo Co., Ltd. (TSE:7246) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the consensus from Press Kogyo's three analysts is for revenues of JP¥184b in 2025, which would reflect a discernible 7.0% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to fall 15% to JP¥68.65 in the same period. Previously, the analysts had been modelling revenues of JP¥208b and earnings per share (EPS) of JP¥83.17 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a real cut to earnings per share numbers as well.

See our latest analysis for Press Kogyo

The consensus price target fell 15% to JP¥713, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. One more thing stood out to us about these estimates, and it's the idea that Press Kogyo's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 7.0% to the end of 2025. This tops off a historical decline of 2.2% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 3.7% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Press Kogyo to suffer worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Press Kogyo. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Press Kogyo going out to 2027, and you can see them free on our platform here.

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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.

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