Yakult Honsha Co.,Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Yakult Honsha Co.,Ltd. (TSE:2267) shareholders are probably feeling a little disappointed, since its shares fell 6.8% to JP¥2,432 in the week after its latest quarterly results. Revenues were in line with forecasts, at JP¥117b, although statutory earnings per share came in 14% below what the analysts expected, at JP¥39.36 per share. 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, Yakult HonshaLtd's nine analysts are forecasting 2026 revenues to be JP¥493.7b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 5.0% to JP¥154. Before this earnings report, the analysts had been forecasting revenues of JP¥495.9b and earnings per share (EPS) of JP¥164 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Yakult HonshaLtd

It might be a surprise to learn that the consensus price target fell 12% to JP¥2,737, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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 Yakult HonshaLtd, with the most bullish analyst valuing it at JP¥3,600 and the most bearish at JP¥2,100 per share. 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 Yakult HonshaLtd shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yakult HonshaLtd's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Yakult HonshaLtd's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.03% growth on an annualised basis. This is compared to a historical growth rate of 6.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.3% 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 Yakult HonshaLtd.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Yakult HonshaLtd's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Yakult HonshaLtd going out to 2028, and you can see them free on our platform here..

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

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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.