Koito Manufacturing Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week saw the newest quarterly earnings release from Koito Manufacturing Co., Ltd. (TSE:7276), an important milestone in the company's journey to build a stronger business. Revenues were JP¥231b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥60.44, an impressive 54% ahead of estimates. 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.

See our latest analysis for Koito Manufacturing

Taking into account the latest results, the consensus forecast from Koito Manufacturing's eleven analysts is for revenues of JP¥968.2b in 2026. This reflects a modest 6.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 26% to JP¥146. Before this earnings report, the analysts had been forecasting revenues of JP¥974.2b and earnings per share (EPS) of JP¥147 in 2026. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,108. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Koito Manufacturing, with the most bullish analyst valuing it at JP¥2,800 and the most bearish at JP¥1,600 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Koito Manufacturing'shistorical trends, as the 5.0% annualised revenue growth to the end of 2026 is roughly in line with the 5.8% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.5% per year. So although Koito Manufacturing is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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. Happily, there were no major changes to revenue forecasts, with the business still 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.

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 Koito Manufacturing analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Koito Manufacturing , and understanding it should be part of your investment process.

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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.