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

Last week saw the newest half-yearly earnings release from Rohto Pharmaceutical Co.,Ltd. (TSE:4527), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of JP¥164b were in line with what the analysts predicted, Rohto PharmaceuticalLtd surprised by delivering a statutory profit of JP¥26.03 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, Rohto PharmaceuticalLtd's nine analysts are forecasting 2026 revenues to be JP¥337.6b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 9.2% to JP¥144 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥337.6b and earnings per share (EPS) of JP¥142 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.

Check out our latest analysis for Rohto PharmaceuticalLtd

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,786. 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. The most optimistic Rohto PharmaceuticalLtd analyst has a price target of JP¥3,500 per share, while the most pessimistic values it at JP¥2,000. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Rohto PharmaceuticalLtd's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Rohto PharmaceuticalLtd.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 2028, and you can see them free on our platform here.

We also provide an overview of the Rohto PharmaceuticalLtd Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.