Yakult Honsha Co.,Ltd. Just Missed EPS By 10%: Here's What Analysts Think Will Happen Next

Yakult Honsha Co.,Ltd. (TSE:2267) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was not a great result overall. While revenues of JP¥500b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 10% to hit JP¥150 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Yakult HonshaLtd's nine analysts currently expect revenues in 2026 to be JP¥505.7b, approximately in line with the last 12 months. Per-share earnings are expected to grow 10% to JP¥169. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥505.2b and earnings per share (EPS) of JP¥166 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.

View our latest analysis for Yakult HonshaLtd

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,156. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Yakult HonshaLtd analyst has a price target of JP¥4,800 per share, while the most pessimistic values it at JP¥2,300. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Yakult HonshaLtd's revenue growth is expected to slow, with the forecast 1.2% annualised growth rate until the end of 2026 being well below the historical 6.5% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Yakult HonshaLtd is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥3,156, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Yakult HonshaLtd. Long-term earnings power is much more important than next year's profits. We have forecasts for Yakult HonshaLtd going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.