Toray Industries, Inc. Just Beat EPS By 20%: Here's What Analysts Think Will Happen Next

It's been a pretty great week for Toray Industries, Inc. (TSE:3402) shareholders, with its shares surging 14% to JP¥932 in the week since its latest interim results. Revenues were JP¥1.3t, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥17.89 were also better than expected, beating analyst predictions by 20%. 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.

View our latest analysis for Toray Industries

Following the latest results, Toray Industries' twelve analysts are now forecasting revenues of JP¥2.63t in 2025. This would be an okay 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 84% to JP¥55.63. Before this earnings report, the analysts had been forecasting revenues of JP¥2.63t and earnings per share (EPS) of JP¥55.40 in 2025. 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¥955, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Toray Industries at JP¥1,270 per share, while the most bearish prices it at JP¥730. 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. It's clear from the latest estimates that Toray Industries' rate of growth is expected to accelerate meaningfully, with the forecast 5.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Toray Industries is expected to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Toray Industries 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 2 warning signs for Toray Industries 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.