TOCALO Co.,Ltd. (TSE:3433) Just Reported Yearly Earnings And Analysts Are Lifting Their Estimates

Investors in TOCALO Co.,Ltd. (TSE:3433) had a good week, as its shares rose 7.8% to close at JP¥1,954 following the release of its annual results. TOCALOLtd reported JP¥47b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥106 beat expectations, being 2.9% higher than what the analyst expected. 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for TOCALOLtd

Taking into account the latest results, the most recent consensus for TOCALOLtd from solitary analyst is for revenues of JP¥52.0b in 2025. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 14% to JP¥121. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥49.5b and earnings per share (EPS) of JP¥109 in 2025. So it seems there's been a definite increase in optimism about TOCALOLtd's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 50% to JP¥3,000per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that TOCALOLtd's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect TOCALOLtd to grow faster than the wider 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, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 analyst estimates for TOCALOLtd going out as far as 2027, and you can see them free on our platform here.

We also provide an overview of the TOCALOLtd Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.