Analysts Have Made A Financial Statement On Kotobuki Spirits Co., Ltd.'s (TSE:2222) Third-Quarter Report

It's been a good week for Kotobuki Spirits Co., Ltd. (TSE:2222) shareholders, because the company has just released its latest third-quarter results, and the shares gained 7.7% to JP¥2,436. It was a credible result overall, with revenues of JP¥21b and statutory earnings per share of JP¥69.61 both in line with analyst estimates, showing that Kotobuki Spirits 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Kotobuki Spirits

Taking into account the latest results, the consensus forecast from Kotobuki Spirits' five analysts is for revenues of JP¥82.0b in 2026. This reflects a solid 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 24% to JP¥95.03. Before this earnings report, the analysts had been forecasting revenues of JP¥81.9b and earnings per share (EPS) of JP¥95.08 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of JP¥2,590, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Kotobuki Spirits, with the most bullish analyst valuing it at JP¥2,800 and the most bearish at JP¥2,300 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Kotobuki Spirits is an easy business to forecast or the the analysts are all using similar assumptions.

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 Kotobuki Spirits' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 18% 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 4.0% annually. Even after the forecast slowdown in growth, it seems obvious that Kotobuki Spirits is also 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. 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.

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 Kotobuki Spirits going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Kotobuki Spirits that you should be aware of.

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.