TOCALO Co.,Ltd. Just Beat Revenue By 8.1%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that TOCALO Co.,Ltd. (TSE:3433) released its first-quarter result to the market. The early response was not positive, with shares down 5.0% to JP¥1,790 in the past week. It was a workmanlike result, with revenues of JP¥13b coming in 8.1% ahead of expectations, and statutory earnings per share of JP¥106, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on TOCALOLtd after the latest results.

Check out our latest analysis for TOCALOLtd

After the latest results, the sole analyst covering TOCALOLtd are now predicting revenues of JP¥53.0b in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to JP¥126. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥52.0b and earnings per share (EPS) of JP¥121 in 2025. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of JP¥3,100, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that TOCALOLtd's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.1% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that TOCALOLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards TOCALOLtd following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥3,100, with the latest estimates not enough to have an impact on their price target.

With that in mind, we wouldn't be too quick to come to a conclusion on TOCALOLtd. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Before you take the next step you should know about the 1 warning sign for TOCALOLtd that we have uncovered.

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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.

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