Results: Shiseido Company, Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for Shiseido Company, Limited (TSE:4911) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.5% to JP¥2,447. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at JP¥228b, statutory earnings beat expectations by a notable 15%, coming in at JP¥9.23 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Shiseido Company's 16 analysts are now forecasting revenues of JP¥992.8b in 2025. This would be an okay 2.4% improvement in revenue compared to the last 12 months. Shiseido Company is also expected to turn profitable, with statutory earnings of JP¥27.70 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥998.3b and earnings per share (EPS) of JP¥30.05 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Shiseido Company

The consensus price target held steady at JP¥2,728, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Shiseido Company analyst has a price target of JP¥3,240 per share, while the most pessimistic values it at JP¥1,700. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Shiseido Company shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shiseido Company's past performance and to peers in the same industry. The analysts are definitely expecting Shiseido Company's growth to accelerate, with the forecast 3.2% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.009% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 4.0% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Shiseido Company is expected to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shiseido Company. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥2,728, 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 Shiseido Company analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Shiseido Company you should know about.

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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.