Rohto Pharmaceutical Co.,Ltd. Just Beat EPS By 6.1%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Rohto Pharmaceutical Co.,Ltd. (TSE:4527) released its third-quarter result to the market. The early response was not positive, with shares down 3.4% to JP¥2,367 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥87b, statutory earnings beat expectations 6.1%, with Rohto PharmaceuticalLtd reporting profits of JP¥52.09 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Rohto PharmaceuticalLtd

After the latest results, the nine analysts covering Rohto PharmaceuticalLtd are now predicting revenues of JP¥355.1b in 2026. If met, this would reflect a major 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 20% to JP¥155. Before this earnings report, the analysts had been forecasting revenues of JP¥355.6b and earnings per share (EPS) of JP¥157 in 2026. 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¥3,421, 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. There are some variant perceptions on Rohto PharmaceuticalLtd, with the most bullish analyst valuing it at JP¥4,400 and the most bearish at JP¥2,450 per share. 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.

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. It's clear from the latest estimates that Rohto PharmaceuticalLtd's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Rohto PharmaceuticalLtd is expected to grow much faster than its 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. 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. 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.

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 estimates - from multiple Rohto PharmaceuticalLtd 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.