Analysts Are Updating Their Rohto Pharmaceutical Co.,Ltd. (TSE:4527) Estimates After Its First-Quarter Results

It's been a pretty great week for Rohto Pharmaceutical Co.,Ltd. (TSE:4527) shareholders, with its shares surging 15% to JP¥2,500 in the week since its latest first-quarter results. Results overall were respectable, with statutory earnings of JP¥136 per share roughly in line with what the analysts had forecast. Revenues of JP¥82b came in 4.6% ahead of analyst predictions. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the most recent consensus for Rohto PharmaceuticalLtd from nine analysts is for revenues of JP¥335.9b in 2026. If met, it would imply a reasonable 4.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to shrink 8.2% to JP¥139 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥336.0b and earnings per share (EPS) of JP¥134 in 2026. So the consensus seems to have become somewhat more optimistic on Rohto PharmaceuticalLtd's earnings potential following these results.

See our latest analysis for Rohto PharmaceuticalLtd

The consensus price target was unchanged at JP¥2,607, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Rohto PharmaceuticalLtd, with the most bullish analyst valuing it at JP¥3,700 and the most bearish at JP¥1,750 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Rohto PharmaceuticalLtd's past performance and to peers in the same industry. We would highlight that Rohto PharmaceuticalLtd's revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2026 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.0% annually. Even after the forecast slowdown in growth, it seems obvious that Rohto PharmaceuticalLtd is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Rohto PharmaceuticalLtd following these results. 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¥2,607, 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 estimates - from multiple Rohto PharmaceuticalLtd analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Rohto PharmaceuticalLtd that you need to take into consideration.

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.