Pigeon Corporation Just Recorded A 35% EPS Beat: Here's What Analysts Are Forecasting Next

Pigeon Corporation (TSE:7956) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.1% to hit JP¥27b. Pigeon also reported a statutory profit of JP¥20.15, which was an impressive 35% above what the analysts had forecast. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Pigeon's ten analysts are now forecasting revenues of JP¥113.2b in 2026. This would be a credible 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 2.1% to JP¥81.68 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥113.1b and earnings per share (EPS) of JP¥80.33 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Pigeon

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,910. 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 Pigeon analyst has a price target of JP¥2,300 per share, while the most pessimistic values it at JP¥1,740. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Pigeon is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pigeon's past performance and to peers in the same industry. The analysts are definitely expecting Pigeon's growth to accelerate, with the forecast 3.3% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.1% per annum 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 4.0% per year. So it's clear that despite the acceleration in growth, Pigeon is expected to grow meaningfully slower than the industry average.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pigeon's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥1,910, with the latest estimates not enough to have an impact on their price targets.

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 Pigeon going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Pigeon 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.