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

Tosoh Corporation (TSE:4042) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of JP¥1.1t were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥182, missing estimates by 7.6%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tosoh after the latest results.

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Taking into account the latest results, the current consensus from Tosoh's seven analysts is for revenues of JP¥1.12t in 2026. This would reflect a satisfactory 5.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 18% to JP¥215. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.10t and earnings per share (EPS) of JP¥215 in 2026. 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.

Check out our latest analysis for Tosoh

There were no changes to revenue or earnings estimates or the price target of JP¥2,284, 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. The most optimistic Tosoh analyst has a price target of JP¥2,850 per share, while the most pessimistic values it at JP¥1,940. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Tosoh's revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2026 being well below the historical 8.3% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.6% annually. So it's pretty clear that, while Tosoh's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Tosoh. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Tosoh going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Tosoh that 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.