Mandom Corporation Just Beat EPS By 45%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Mandom Corporation (TSE:4917) filed its annual result this time last week. The early response was not positive, with shares down 5.3% to JP¥1,324 in the past week. Revenues were JP¥76b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥41.27, an impressive 45% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 1 warning sign about Mandom. View them for free.

Taking into account the latest results, the consensus forecast from Mandom's five analysts is for revenues of JP¥80.1b in 2026. This reflects an okay 5.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 75% to JP¥71.97. Before this earnings report, the analysts had been forecasting revenues of JP¥80.1b and earnings per share (EPS) of JP¥67.28 in 2026. So the consensus seems to have become somewhat more optimistic on Mandom's earnings potential following these results.

Check out our latest analysis for Mandom

The consensus price target was unchanged at JP¥1,324, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Mandom analyst has a price target of JP¥1,400 per share, while the most pessimistic values it at JP¥1,200. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Mandom is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Mandom's rate of growth is expected to accelerate meaningfully, with the forecast 5.2% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Mandom is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mandom's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥1,324, 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 Mandom analysts - going out to 2028, 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 Mandom 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.