Ajinomoto Co., Inc. (TSE:2802) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

The quarterly results for Ajinomoto Co., Inc. (TSE:2802) were released last week, making it a good time to revisit its performance. Ajinomoto reported in line with analyst predictions, delivering revenues of JP¥407b and statutory earnings per share of JP¥64.14, suggesting the business is executing well and in line with its plan. 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. 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.

Check out our latest analysis for Ajinomoto

After the latest results, the 13 analysts covering Ajinomoto are now predicting revenues of JP¥1.63t in 2026. If met, this would reflect a reasonable 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 30% to JP¥241. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.63t and earnings per share (EPS) of JP¥241 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.

The analysts reconfirmed their price target of JP¥7,057, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Ajinomoto analyst has a price target of JP¥8,500 per share, while the most pessimistic values it at JP¥5,400. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Ajinomoto's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.6% growth on an annualised basis. This is compared to a historical growth rate of 8.0% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% per year. So it's pretty clear that, while Ajinomoto's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. The consensus price target held steady at JP¥7,057, with the latest estimates not enough to have an impact on their price targets.

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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.