Analysts Are Updating Their Daiseki Co.,Ltd. (TSE:9793) Estimates After Its Third-Quarter Results

Investors in Daiseki Co.,Ltd. (TSE:9793) had a good week, as its shares rose 7.8% to close at JP¥3,885 following the release of its quarterly results. DaisekiLtd reported in line with analyst predictions, delivering revenues of JP¥17b and statutory earnings per share of JP¥193, suggesting the business is executing well and in line with its plan. 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.

View our latest analysis for DaisekiLtd

Taking into account the latest results, the most recent consensus for DaisekiLtd from eight analysts is for revenues of JP¥72.4b in 2026. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 9.9% to JP¥214. Before this earnings report, the analysts had been forecasting revenues of JP¥71.5b and earnings per share (EPS) of JP¥213 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¥4,705. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values DaisekiLtd at JP¥6,000 per share, while the most bearish prices it at JP¥3,900. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 DaisekiLtd's rate of growth is expected to accelerate meaningfully, with the forecast 8.1% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 6.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that DaisekiLtd is expected to grow much faster than its 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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on DaisekiLtd. Long-term earnings power is much more important than next year's profits. We have forecasts for DaisekiLtd going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.