Earnings Update: Tokyo Century Corporation (TSE:8439) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

As you might know, Tokyo Century Corporation (TSE:8439) recently reported its full-year numbers. It was a credible result overall, with revenues of JP¥1.4t and statutory earnings per share of JP¥175 both in line with analyst estimates, showing that Tokyo Century is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Tokyo Century's five analysts are forecasting 2026 revenues to be JP¥1.39t, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 7.5% to JP¥188. Before this earnings report, the analysts had been forecasting revenues of JP¥1.44t and earnings per share (EPS) of JP¥185 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

See our latest analysis for Tokyo Century

The consensus has reconfirmed its price target of JP¥1,842, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Tokyo Century's market value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Tokyo Century at JP¥2,100 per share, while the most bearish prices it at JP¥1,620. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Tokyo Century's revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2026 being well below the historical 3.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tokyo Century.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, long term profitability is more important for the value creation process. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tokyo Century going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - Tokyo Century has 1 warning sign we think you should be aware of.

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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.