Taikisha Ltd. (TSE:1979) Just Reported Interim Earnings: Have Analysts Changed Their Mind On The Stock?

Last week, you might have seen that Taikisha Ltd. (TSE:1979) released its half-year result to the market. The early response was not positive, with shares down 3.6% to JP¥4,885 in the past week. Taikisha reported in line with analyst predictions, delivering revenues of JP¥115b and statutory earnings per share of JP¥472, suggesting the business is executing well and in line with its plan. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Taikisha

Taking into account the latest results, the current consensus, from the seven analysts covering Taikisha, is for revenues of JP¥260.6b in 2025. This implies a noticeable 6.2% reduction in Taikisha's revenue over the past 12 months. Statutory earnings per share are expected to plummet 24% to JP¥343 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥260.7b and earnings per share (EPS) of JP¥343 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,338. 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. Currently, the most bullish analyst values Taikisha at JP¥6,400 per share, while the most bearish prices it at JP¥4,800. This is a very narrow spread of estimates, implying either that Taikisha is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 12% annualised decline to the end of 2025. That is a notable change from historical growth of 5.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Taikisha is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Taikisha going out to 2027, and you can see them free on our platform here.

Even so, be aware that Taikisha is showing 3 warning signs in our investment analysis , and 2 of those don't sit too well with us...

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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.