Earnings Update: DIP Corporation (TSE:2379) Just Reported Its Interim Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that DIP Corporation (TSE:2379) filed its half-year result this time last week. The early response was not positive, with shares down 4.5% to JP¥2,157 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥13b, statutory earnings were in line with expectations, at JP¥168 per share. 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.

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After the latest results, the eight analysts covering DIP are now predicting revenues of JP¥58.8b in 2026. If met, this would reflect a satisfactory 3.6% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥148, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥59.2b and earnings per share (EPS) of JP¥151 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for DIP

There were no changes to revenue or earnings estimates or the price target of JP¥2,150, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values DIP at JP¥2,900 per share, while the most bearish prices it at JP¥1,800. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await DIP shareholders.

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 pretty clear that there is an expectation that DIP's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.3% growth on an annualised basis. This is compared to a historical growth rate of 12% 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) 6.9% annually. Factoring in the forecast slowdown in growth, it looks like DIP is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥2,150, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for DIP going out to 2028, and you can see them free on our platform here.

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

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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.