Toyo Suisan Kaisha, Ltd. Just Beat EPS By 16%: Here's What Analysts Think Will Happen Next

Investors in Toyo Suisan Kaisha, Ltd. (TSE:2875) had a good week, as its shares rose 9.6% to close at JP¥9,647 following the release of its half-yearly results. It looks like a credible result overall - although revenues of JP¥246b were in line with what the analysts predicted, Toyo Suisan Kaisha surprised by delivering a statutory profit of JP¥315 per share, a notable 16% above expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Toyo Suisan Kaisha

Following last week's earnings report, Toyo Suisan Kaisha's seven analysts are forecasting 2025 revenues to be JP¥507.1b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be JP¥614, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥505.9b and earnings per share (EPS) of JP¥610 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¥11,143. 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. Currently, the most bullish analyst values Toyo Suisan Kaisha at JP¥12,500 per share, while the most bearish prices it at JP¥10,000. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Toyo Suisan Kaisha's past performance and to peers in the same industry. We would highlight that Toyo Suisan Kaisha's revenue growth is expected to slow, with the forecast 2.9% annualised growth rate until the end of 2025 being well below the historical 4.0% p.a. growth over the last 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.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our 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.