Revenue Beat: Raito Kogyo Co., Ltd. Beat Analyst Estimates By 8.9%

It's been a pretty great week for Raito Kogyo Co., Ltd. (TSE:1926) shareholders, with its shares surging 18% to JP¥2,589 in the week since its latest quarterly results. Results overall were respectable, with statutory earnings of JP¥168 per share roughly in line with what the analysts had forecast. Revenues of JP¥34b came in 8.9% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Raito Kogyo

Taking into account the latest results, the most recent consensus for Raito Kogyo from five analysts is for revenues of JP¥124.9b in 2026. If met, it would imply a reasonable 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 8.3% to JP¥215. In the lead-up to this report, the analysts had been modelling revenues of JP¥122.9b and earnings per share (EPS) of JP¥211 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.4% to JP¥2,360. It looks as though they previously had some doubts over whether the business would live up to their expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Raito Kogyo at JP¥2,900 per share, while the most bearish prices it at JP¥1,900. 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 Raito Kogyo'shistorical trends, as the 2.5% annualised revenue growth to the end of 2026 is roughly in line with the 2.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.2% annually. 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Raito Kogyo going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.