Here's What Analysts Are Forecasting For ITOCHU Corporation (TSE:8001) After Its Yearly Results

As you might know, ITOCHU Corporation (TSE:8001) last week released its latest annual, and things did not turn out so great for shareholders. ITOCHU missed analyst forecasts, with revenues of JP¥14t and statutory earnings per share (EPS) of JP¥553, falling short by 2.3% and 2.7% respectively. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for ITOCHU

Following the latest results, ITOCHU's eight analysts are now forecasting revenues of JP¥14t in 2025. This would be a modest 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 11% to JP¥619. In the lead-up to this report, the analysts had been modelling revenues of JP¥14t and earnings per share (EPS) of JP¥598 in 2025. So the consensus seems to have become somewhat more optimistic on ITOCHU's earnings potential following these results.

There's been no major changes to the consensus price target of JP¥7,383, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic ITOCHU analyst has a price target of JP¥8,500 per share, while the most pessimistic values it at JP¥6,700. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ITOCHU is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that ITOCHU's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 5.8% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 0.3% per year. So it's pretty clear that, while ITOCHU's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ITOCHU following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

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. At Simply Wall St, we have a full range of analyst estimates for ITOCHU going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with ITOCHU .

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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.