TOMY Company, Ltd. Beat Revenue Forecasts By 11%: Here's What Analysts Are Forecasting Next

The quarterly results for TOMY Company, Ltd. (TSE:7867) were released last week, making it a good time to revisit its performance. TOMY Company beat revenue forecasts by a solid 11% to hit JP¥54b. Statutory earnings per share came in at JP¥108, 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 TOMY Company after the latest results.

Check out our latest analysis for TOMY Company

Taking into account the latest results, the most recent consensus for TOMY Company from three analysts is for revenues of JP¥234.8b in 2025. If met, it would imply an okay 7.3% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 40% to JP¥165. Before this earnings report, the analysts had been forecasting revenues of JP¥231.5b and earnings per share (EPS) of JP¥162 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 12% to JP¥3,337. It looks as though they previously had some doubts over whether the business would live up to their expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on TOMY Company, with the most bullish analyst valuing it at JP¥3,610 and the most bearish at JP¥3,000 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 TOMY Company's rate of growth is expected to accelerate meaningfully, with the forecast 9.9% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect TOMY Company 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have estimates - from multiple TOMY Company analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the TOMY Company Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.