Earnings Update: Daiei Kankyo Co., Ltd. (TSE:9336) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

It's been a good week for Daiei Kankyo Co., Ltd. (TSE:9336) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.2% to JP¥2,950. It was a workmanlike result, with revenues of JP¥21b coming in 3.1% ahead of expectations, and statutory earnings per share of JP¥136, in line with analyst appraisals. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Daiei Kankyo

Taking into account the latest results, the current consensus from Daiei Kankyo's four analysts is for revenues of JP¥84.3b in 2026. This would reflect a notable 9.1% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 12% to JP¥158. Before this earnings report, the analysts had been forecasting revenues of JP¥84.0b and earnings per share (EPS) of JP¥159 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,323. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Daiei Kankyo analyst has a price target of JP¥3,400 per share, while the most pessimistic values it at JP¥3,200. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Daiei Kankyo'shistorical trends, as the 7.2% annualised revenue growth to the end of 2026 is roughly in line with the 6.5% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.1% per year. So although Daiei Kankyo is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 Daiei Kankyo going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Daiei Kankyo's balance sheet, and whether we think Daiei Kankyo is carrying too much debt, for free on our platform 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.