Taikisha Ltd. Just Missed EPS By 21%: Here's What Analysts Think Will Happen Next

Investors in Taikisha Ltd. (TSE:1979) had a good week, as its shares rose 9.2% to close at JP¥4,985 following the release of its quarterly results. Statutory earnings per share disappointed, coming in -21% short of expectations, at JP¥77.47. Fortunately revenue performance was a lot stronger at JP¥70b arriving 12% ahead of 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 Taikisha

Following last week's earnings report, Taikisha's seven analysts are forecasting 2026 revenues to be JP¥274.4b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 8.7% to JP¥382 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥273.8b and earnings per share (EPS) of JP¥380 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.

There were no changes to revenue or earnings estimates or the price target of JP¥5,355, 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. The most optimistic Taikisha analyst has a price target of JP¥6,400 per share, while the most pessimistic values it at JP¥4,800. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's pretty clear that there is an expectation that Taikisha's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.4% growth on an annualised basis. This is compared to a historical growth rate of 6.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Taikisha.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Taikisha's revenue is expected to perform worse 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 Taikisha analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Taikisha has 2 warning signs (and 1 which is concerning) we think you should know about.

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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.