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

It's been a sad week for Ito En, Ltd. (TSE:2593), who've watched their investment drop 12% to JP¥2,974 in the week since the company reported its quarterly result. Statutory earnings per share fell badly short of expectations, coming in at JP¥18.79, some 67% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at JP¥109b. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ito En after the latest results.

See our latest analysis for Ito En

Following the latest results, Ito En's dual analysts are now forecasting revenues of JP¥487.4b in 2026. This would be a modest 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 42% to JP¥158. In the lead-up to this report, the analysts had been modelling revenues of JP¥482.0b and earnings per share (EPS) of JP¥146 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The average the analysts price target fell 6.1% to JP¥3,600, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Ito En's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.2% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 0.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 1.9% per year. So it looks like Ito En is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ito En following these results. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Ito En's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You can also see our analysis of Ito En'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.