Analysts' Revenue Estimates For Dai-ichi Life Holdings, Inc. (TSE:8750) Are Surging Higher

Dai-ichi Life Holdings, Inc. (TSE:8750) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the latest upgrade, the current consensus, from the eight analysts covering Dai-ichi Life Holdings, is for revenues of JP¥9.4t in 2025, which would reflect an uneasy 9.5% reduction in Dai-ichi Life Holdings' sales over the past 12 months. Statutory earnings per share are presumed to increase 3.3% to JP¥352. Previously, the analysts had been modelling revenues of JP¥8.1t and earnings per share (EPS) of JP¥333 in 2025. The forecasts seem more optimistic now, with a nice increase in revenue and a small increase to earnings per share estimates.

View our latest analysis for Dai-ichi Life Holdings

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥3,882, suggesting that the forecast performance does not have a long term impact on the company's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dai-ichi Life Holdings' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 9.5% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 8.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.7% annually for the foreseeable future. It's pretty clear that Dai-ichi Life Holdings' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Dai-ichi Life Holdings.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Dai-ichi Life Holdings analysts - going out to 2027, and you can see them free 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.