Ito En, Ltd. (TSE:2593) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Shareholders might have noticed that Ito En, Ltd. (TSE:2593) filed its first-quarter result this time last week. The early response was not positive, with shares down 7.8% to JP¥3,265 in the past week. Results were roughly in line with estimates, with revenues of JP¥125b and statutory earnings per share of JP¥126. 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. 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, Ito En's three analysts currently expect revenues in 2025 to be JP¥466.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 19% to JP¥133. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥460.3b and earnings per share (EPS) of JP¥131 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of JP¥3,900, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Ito En at JP¥4,000 per share, while the most bearish prices it at JP¥3,800. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Ito En is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Ito En's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.5% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 2.1% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 1.9% annually. Not only are Ito En's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

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. 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. 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 Ito En going out to 2027, and you can see them 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.