The Rohto Pharmaceutical Co.,Ltd. (TSE:4527) Annual Results Are Out And Analysts Have Published New Forecasts

It's been a mediocre week for Rohto Pharmaceutical Co.,Ltd. (TSE:4527) shareholders, with the stock dropping 12% to JP¥2,123 in the week since its latest annual results. It was a credible result overall, with revenues of JP¥309b and statutory earnings per share of JP¥136 both in line with analyst estimates, showing that Rohto PharmaceuticalLtd is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the eight analysts covering Rohto PharmaceuticalLtd are now predicting revenues of JP¥346.1b in 2026. If met, this would reflect a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.5% to JP¥143. Before this earnings report, the analysts had been forecasting revenues of JP¥351.7b and earnings per share (EPS) of JP¥149 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for Rohto PharmaceuticalLtd

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥2,873, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Rohto PharmaceuticalLtd analyst has a price target of JP¥3,900 per share, while the most pessimistic values it at JP¥1,950. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Rohto PharmaceuticalLtd'shistorical trends, as the 12% annualised revenue growth to the end of 2026 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.9% annually. So it's pretty clear that Rohto PharmaceuticalLtd is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Rohto PharmaceuticalLtd. 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¥2,873, with the latest estimates not enough to have an impact on their price targets.

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 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Rohto PharmaceuticalLtd .

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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.