Here's What Analysts Are Forecasting For Hikari Tsushin, Inc. (TSE:9435) After Its First-Quarter Results

Explore Hikari Tsushin's Fair Values from the Community and select yours

The first-quarter results for Hikari Tsushin, Inc. (TSE:9435) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of JP¥167b and statutory earnings per share of JP¥642 both in line with analyst estimates, showing that Hikari Tsushin is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hikari Tsushin after the latest results.

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After the latest results, the four analysts covering Hikari Tsushin are now predicting revenues of JP¥767.6b in 2026. If met, this would reflect a solid 8.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.5% to JP¥2,444. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥763.9b and earnings per share (EPS) of JP¥2,391 in 2026. So the consensus seems to have become somewhat more optimistic on Hikari Tsushin's earnings potential following these results.

View our latest analysis for Hikari Tsushin

The consensus price target was unchanged at JP¥43,485, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Hikari Tsushin, with the most bullish analyst valuing it at JP¥44,000 and the most bearish at JP¥43,000 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Hikari Tsushin 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 clear from the latest estimates that Hikari Tsushin's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 4.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hikari Tsushin is expected to grow much faster than its industry.

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 Hikari Tsushin 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¥43,485, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Hikari Tsushin going out to 2028, and you can see them free on our platform here.

Even so, be aware that Hikari Tsushin is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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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.