Yakult Honsha Co.,Ltd. (TSE:2267) Just Released Its First-Quarter Earnings: Here's What Analysts Think

It's been a good week for Yakult Honsha Co.,Ltd. (TSE:2267) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.9% to JP¥3,086. Yakult HonshaLtd reported JP¥123b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥46.48 beat expectations, being 2.2% higher than what the analysts expected. 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.

Check out our latest analysis for Yakult HonshaLtd

Taking into account the latest results, the most recent consensus for Yakult HonshaLtd from nine analysts is for revenues of JP¥514.9b in 2025. If met, it would imply a credible 2.2% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be JP¥173, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥517.0b and earnings per share (EPS) of JP¥175 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,304. 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. There are some variant perceptions on Yakult HonshaLtd, with the most bullish analyst valuing it at JP¥4,700 and the most bearish at JP¥2,800 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 3.0% annualised growth rate until the end of 2025 being well below the historical 5.9% 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 3.7% 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 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Yakult HonshaLtd going out to 2027, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com