Raito Kogyo Co., Ltd. Just Missed EPS By 7.9%: Here's What Analysts Think Will Happen Next

As you might know, Raito Kogyo Co., Ltd. (TSE:1926) recently reported its annual numbers. Revenues of JP¥117b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥168, missing estimates by 7.9%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Raito Kogyo

Following the latest results, Raito Kogyo's five analysts are now forecasting revenues of JP¥121.0b in 2025. This would be a credible 3.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 13% to JP¥194. Before this earnings report, the analysts had been forecasting revenues of JP¥122.5b and earnings per share (EPS) of JP¥193 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,170, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Raito Kogyo, with the most bullish analyst valuing it at JP¥2,400 and the most bearish at JP¥1,700 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Raito Kogyo'shistorical trends, as the 3.1% annualised revenue growth to the end of 2025 is roughly in line with the 2.8% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 2.5% per year. So although Raito Kogyo is expected to maintain its revenue growth rate, it's only growing at about the rate of 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. 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¥2,170, 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 Raito Kogyo going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Raito Kogyo .

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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.