Terumo Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Terumo Corporation (TSE:4543) had a good week, as its shares rose 5.5% to close at JP¥3,044 following the release of its half-year results. It looks like the results were a bit of a negative overall. While revenues of JP¥509b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.5% to hit JP¥19.75 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Terumo

Taking into account the latest results, the most recent consensus for Terumo from 15 analysts is for revenues of JP¥1.02t in 2025. If met, it would imply a satisfactory 3.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.5% to JP¥88.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.01t and earnings per share (EPS) of JP¥87.72 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¥3,278, suggesting that the company has met expectations in its recent result. 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. The most optimistic Terumo analyst has a price target of JP¥3,700 per share, while the most pessimistic values it at JP¥2,500. 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.

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 Terumo's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.8% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this to the 40 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.6% per year. So it's pretty clear that, while Terumo's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥3,278, 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. We have forecasts for Terumo going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Terumo Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.