Stock Analysis

COSMOS Pharmaceutical Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

TSE:3349
Source: Shutterstock

Shareholders of COSMOS Pharmaceutical Corporation (TSE:3349) will be pleased this week, given that the stock price is up 10% to JP¥7,610 following its latest interim results. It looks like a credible result overall - although revenues of JP¥506b were what the analysts expected, COSMOS Pharmaceutical surprised by delivering a (statutory) profit of JP¥79.31 per share, an impressive 25% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for COSMOS Pharmaceutical

earnings-and-revenue-growth
TSE:3349 Earnings and Revenue Growth January 17th 2025

Taking into account the latest results, the consensus forecast from COSMOS Pharmaceutical's 13 analysts is for revenues of JP¥1.03t in 2025. This reflects an okay 3.4% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥351, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.03t and earnings per share (EPS) of JP¥339 in 2025. So the consensus seems to have become somewhat more optimistic on COSMOS Pharmaceutical's earnings potential following these results.

There's been no major changes to the consensus price target of JP¥8,344, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values COSMOS Pharmaceutical at JP¥10,500 per share, while the most bearish prices it at JP¥7,000. 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 COSMOS Pharmaceutical shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.0% growth on an annualised basis. That is in line with its 8.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.8% per year. So although COSMOS Pharmaceutical is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards COSMOS Pharmaceutical following these results. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on COSMOS Pharmaceutical. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for COSMOS Pharmaceutical going out to 2027, and you can see them free on our platform here..

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

New: AI Stock Screener & Alerts

Our new AI Stock Screener scans the market every day to uncover opportunities.

• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies

Or build your own from over 50 metrics.

Explore Now for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.