Kusuri No Aoki Holdings Co., Ltd. (TSE:3549) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Kusuri No Aoki Holdings Co., Ltd. (TSE:3549) had a good week, as its shares rose 3.7% to close at JP¥3,487 following the release of its first-quarter results. Kusuri No Aoki Holdings reported in line with analyst predictions, delivering revenues of JP¥120b and statutory earnings per share of JP¥55.50, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Kusuri No Aoki Holdings

Following the latest results, Kusuri No Aoki Holdings' five analysts are now forecasting revenues of JP¥488.8b in 2025. This would be a notable 8.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 55% to JP¥189. Before this earnings report, the analysts had been forecasting revenues of JP¥488.8b and earnings per share (EPS) of JP¥187 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.

There were no changes to revenue or earnings estimates or the price target of JP¥3,862, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Kusuri No Aoki Holdings at JP¥4,110 per share, while the most bearish prices it at JP¥3,300. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 12% growth on an annualised basis. That is in line with its 10.0% 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 3.1% per year. So although Kusuri No Aoki Holdings 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 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥3,862, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Kusuri No Aoki Holdings going out to 2027, 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 Kusuri No Aoki Holdings , and understanding it 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.