Ito En, Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Ito En, Ltd. (TSE:2593) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Ito En missed earnings this time around, with JP¥104b revenue coming in 2.4% below what the analysts had modelled. Statutory earnings per share (EPS) of JP¥25.08 also fell short of expectations by 17%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Ito En

Taking into account the latest results, the current consensus from Ito En's twin analysts is for revenues of JP¥465.0b in 2025. This would reflect a modest 3.4% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 6.8% to JP¥150. In the lead-up to this report, the analysts had been modelling revenues of JP¥468.5b and earnings per share (EPS) of JP¥144 in 2025. So the consensus seems to have become somewhat more optimistic on Ito En's earnings potential following these results.

There's been no major changes to the consensus price target of JP¥5,275, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ito En's past performance and to peers in the same industry. For example, we noticed that Ito En's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.7% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.7% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 2.4% per year. So while Ito En's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ito En's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥5,275, with the latest estimates not enough to have an impact on their price targets.

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 analyst estimates for Ito En going out as far as 2026, and you can see them free on our platform here.

We also provide an overview of the Ito En Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.