Ajinomoto Co., Inc. Just Missed EPS By 39%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for Ajinomoto Co., Inc. (TSE:2802), which a week ago released some disappointing half-yearly results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with JP¥375b revenue coming in 4.9% lower than what the analystsexpected. Statutory earnings per share (EPS) of JP¥19.56 missed the mark badly, arriving some 39% below what was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the eleven analysts covering Ajinomoto are now predicting revenues of JP¥1.59t in 2026. If met, this would reflect a satisfactory 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 78% to JP¥130. Before this earnings report, the analysts had been forecasting revenues of JP¥1.60t and earnings per share (EPS) of JP¥133 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.

See our latest analysis for Ajinomoto

The analysts reconfirmed their price target of JP¥4,450, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Ajinomoto, with the most bullish analyst valuing it at JP¥5,100 and the most bearish at JP¥3,500 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ajinomoto shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 8.1% growth on an annualised basis. That is in line with its 8.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.3% annually. So although Ajinomoto is expected to maintain its revenue growth rate, it's definitely expected 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Ajinomoto going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Ajinomoto has 2 warning signs we think you should be aware of.

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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.