ASICS Corporation Just Beat EPS By 53%: Here's What Analysts Think Will Happen Next

It's been a good week for ASICS Corporation (TSE:7936) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.3% to JP¥2,805. It looks like a credible result overall - although revenues of JP¥183b were what the analysts expected, ASICS surprised by delivering a (statutory) profit of JP¥31.52 per share, an impressive 53% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for ASICS

Taking into account the latest results, the consensus forecast from ASICS' nine analysts is for revenues of JP¥722.0b in 2025. This reflects a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 22% to JP¥102. Before this earnings report, the analysts had been forecasting revenues of JP¥712.0b and earnings per share (EPS) of JP¥99.16 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of JP¥2,946, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic ASICS analyst has a price target of JP¥3,400 per share, while the most pessimistic values it at JP¥1,800. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that ASICS' revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.1% per year. So it's pretty clear that, while ASICS' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ASICS' earnings potential next year. 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. The consensus price target held steady at JP¥2,946, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on ASICS. Long-term earnings power is much more important than next year's profits. We have forecasts for ASICS going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with ASICS , and understanding this should be part of your investment process.

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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.