KOSÉ Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

KOSÉ Corporation (TSE:4922) just released its latest first-quarter results and things are looking bullish. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 12% higher than the analysts had forecast, at JP¥78b, while EPS were JP¥122 beating analyst models by 78%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for KOSÉ

After the latest results, the ten analysts covering KOSÉ are now predicting revenues of JP¥322.2b in 2024. If met, this would reflect an okay 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.2% to JP¥263. In the lead-up to this report, the analysts had been modelling revenues of JP¥319.4b and earnings per share (EPS) of JP¥263 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¥8,876, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values KOSÉ at JP¥12,000 per share, while the most bearish prices it at JP¥7,000. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that KOSÉ's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.3% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 1.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.6% per year. So it looks like KOSÉ is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for KOSÉ going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with KOSÉ .

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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.