The Mandom Corporation (TSE:4917) Half-Year Results Are Out And Analysts Have Published New Forecasts

As you might know, Mandom Corporation (TSE:4917) recently reported its half-year numbers. Results were roughly in line with estimates, with revenues of JP¥20b and statutory earnings per share of JP¥57.84. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Mandom

Following last week's earnings report, Mandom's five analysts are forecasting 2025 revenues to be JP¥76.4b, approximately in line with the last 12 months. Statutory earnings per share are forecast to crater 52% to JP¥27.75 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥76.2b and earnings per share (EPS) of JP¥23.54 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the substantial gain in earnings per share expectations following these results.

There's been no major changes to the consensus price target of JP¥1,282, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Mandom analyst has a price target of JP¥1,310 per share, while the most pessimistic values it at JP¥1,200. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mandom's past performance and to peers in the same industry. For example, we noticed that Mandom's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.1% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.5% per year. So although Mandom's revenue growth is expected to improve, it is still expected to grow slower than the 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Mandom's revenue is expected to 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.

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 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Mandom has 1 warning sign we think you should be aware of.

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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.