Ajinomoto Co., Inc. Just Missed EPS By 9.3%: Here's What Analysts Think Will Happen Next

It's been a good week for Ajinomoto Co., Inc. (TSE:2802) shareholders, because the company has just released its latest annual results, and the shares gained 3.8% to JP¥6,089. It looks like the results were a bit of a negative overall. While revenues of JP¥1.4t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 9.3% to hit JP¥167 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ajinomoto after the latest results.

View our latest analysis for Ajinomoto

Following the latest results, Ajinomoto's 13 analysts are now forecasting revenues of JP¥1.51t in 2025. This would be an okay 5.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 20% to JP¥205. Before this earnings report, the analysts had been forecasting revenues of JP¥1.52t and earnings per share (EPS) of JP¥208 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¥6,020. 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. There are some variant perceptions on Ajinomoto, with the most bullish analyst valuing it at JP¥7,300 and the most bearish at JP¥4,500 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Ajinomoto'shistorical trends, as the 5.2% annualised revenue growth to the end of 2025 is roughly in line with the 5.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.7% annually. So it's pretty clear that Ajinomoto is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥6,020, 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. At Simply Wall St, we have a full range of analyst estimates for Ajinomoto going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Ajinomoto's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.