KOSÉ Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

There's been a notable change in appetite for KOSÉ Corporation (TSE:4922) shares in the week since its half-year report, with the stock down 14% to JP¥8,485. Revenues were JP¥159b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥81.78, an impressive 26% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on KOSÉ after the latest results.

See our latest analysis for KOSÉ

Taking into account the latest results, the consensus forecast from KOSÉ's eleven analysts is for revenues of JP¥328.1b in 2024. This reflects an okay 4.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 21% to JP¥308. In the lead-up to this report, the analysts had been modelling revenues of JP¥328.3b and earnings per share (EPS) of JP¥306 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥10,614, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on KOSÉ, with the most bullish analyst valuing it at JP¥13,000 and the most bearish at JP¥8,200 per share. 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 KOSÉ shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that KOSÉ's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 8.3% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 1.2% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.1% annually. Not only are KOSÉ's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

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. 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¥10,614, 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 forecasts for KOSÉ going out to 2026, and you can see them free on our platform here.

You can also see our analysis of KOSÉ's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.