Toyo Suisan Kaisha, Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, Toyo Suisan Kaisha, Ltd. (TSE:2875) just kicked off its latest first-quarter results with some very strong numbers. The company beat forecasts, with revenue of JP¥127b, some 6.2% above estimates, and statutory earnings per share (EPS) coming in at JP¥173, 31% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Toyo Suisan Kaisha

Taking into account the latest results, Toyo Suisan Kaisha's seven analysts currently expect revenues in 2025 to be JP¥513.0b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be JP¥603, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥510.4b and earnings per share (EPS) of JP¥594 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.

There were no changes to revenue or earnings estimates or the price target of JP¥11,343, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Toyo Suisan Kaisha analyst has a price target of JP¥12,300 per share, while the most pessimistic values it at JP¥10,400. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. It's pretty clear that there is an expectation that Toyo Suisan Kaisha's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 3.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Toyo Suisan Kaisha.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Toyo Suisan Kaisha going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Toyo Suisan Kaisha that 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.

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