Stock Analysis

Rohto Pharmaceutical Co.,Ltd. Just Missed EPS By 6.8%: Here's What Analysts Think Will Happen Next

TSE:4527
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The quarterly results for Rohto Pharmaceutical Co.,Ltd. (TSE:4527) were released last week, making it a good time to revisit its performance. It looks like the results were a bit of a negative overall. While revenues of JP¥68b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.8% to hit JP¥37.18 per share. 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. 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 Rohto PharmaceuticalLtd

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TSE:4527 Earnings and Revenue Growth August 11th 2024

Taking into account the latest results, the most recent consensus for Rohto PharmaceuticalLtd from eight analysts is for revenues of JP¥307.8b in 2025. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 12% to JP¥149. Before this earnings report, the analysts had been forecasting revenues of JP¥301.9b and earnings per share (EPS) of JP¥150 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,989. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Rohto PharmaceuticalLtd, with the most bullish analyst valuing it at JP¥4,770 and the most bearish at JP¥3,460 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Rohto PharmaceuticalLtd's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.3% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Rohto PharmaceuticalLtd to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Rohto PharmaceuticalLtd analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Rohto PharmaceuticalLtd's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.