Terumo Corporation (TSE:4543) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

Terumo Corporation (TSE:4543) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of JP¥264b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥23.96, missing estimates by 2.8%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Terumo

Taking into account the latest results, the most recent consensus for Terumo from 14 analysts is for revenues of JP¥1.10t in 2026. If met, it would imply a solid 8.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 21% to JP¥103. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.10t and earnings per share (EPS) of JP¥103 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of JP¥3,379, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Terumo analyst has a price target of JP¥3,810 per share, while the most pessimistic values it at JP¥2,800. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Terumo's revenue growth is expected to slow, with the forecast 6.9% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Compare this to the 40 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.9% 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. 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 estimates - from multiple Terumo analysts - 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.

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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.