Unicharm Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Unicharm Corporation (TSE:8113) had a good week, as its shares rose 4.8% to close at JP¥4,911 following the release of its first-quarter results. Revenues of JP¥236b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥30.21, missing estimates by 7.7%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Unicharm

After the latest results, the nine analysts covering Unicharm are now predicting revenues of JP¥1.00t in 2024. If met, this would reflect a modest 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.5% to JP¥159. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.01t and earnings per share (EPS) of JP¥160 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,653. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Unicharm analyst has a price target of JP¥6,400 per share, while the most pessimistic values it at JP¥4,600. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Unicharm's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Unicharm'shistorical trends, as the 6.5% annualised revenue growth to the end of 2024 is roughly in line with the 7.1% annual growth 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 revenues grow 5.1% per year. So although Unicharm is expected to maintain its revenue growth rate, it's definitely expected 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¥5,653, 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. At Simply Wall St, we have a full range of analyst estimates for Unicharm going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.