Stock Analysis

Daiseki Co.,Ltd. (TSE:9793) Interim Results Just Came Out: Here's What Analysts Are Forecasting For This Year

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TSE:9793

Shareholders might have noticed that Daiseki Co.,Ltd. (TSE:9793) filed its half-yearly result this time last week. The early response was not positive, with shares down 7.8% to JP¥3,660 in the past week. DaisekiLtd reported in line with analyst predictions, delivering revenues of JP¥33b and statutory earnings per share of JP¥193, suggesting the business is executing well and in line with its plan. 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. 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 DaisekiLtd

TSE:9793 Earnings and Revenue Growth October 5th 2024

Following last week's earnings report, DaisekiLtd's seven analysts are forecasting 2025 revenues to be JP¥67.0b, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 3.0% to JP¥193 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥67.3b and earnings per share (EPS) of JP¥193 in 2025. 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.

The analysts reconfirmed their price target of JP¥4,600, showing that the business is executing well and in line with expectations. 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 DaisekiLtd analyst has a price target of JP¥6,000 per share, while the most pessimistic values it at JP¥3,900. 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 DaisekiLtd shareholders.

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 DaisekiLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.4% growth on an annualised basis. This is compared to a historical growth rate of 6.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than DaisekiLtd.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥4,600, with the latest estimates not enough to have an impact on their price targets.

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 DaisekiLtd going out to 2027, and you can see them free on our platform here..

You can also see our analysis of DaisekiLtd's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.