Tosoh Corporation (TSE:4042) Just Released Its Interim Earnings: Here's What Analysts Think

Investors in Tosoh Corporation (TSE:4042) had a good week, as its shares rose 7.5% to close at JP¥2,054 following the release of its half-year results. Tosoh reported in line with analyst predictions, delivering revenues of JP¥528b and statutory earnings per share of JP¥180, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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.

Check out our latest analysis for Tosoh

Taking into account the latest results, the most recent consensus for Tosoh from nine analysts is for revenues of JP¥1.09t in 2025. If met, it would imply an okay 4.0% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 13% to JP¥197. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.09t and earnings per share (EPS) of JP¥198 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,367. 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. There are some variant perceptions on Tosoh, with the most bullish analyst valuing it at JP¥3,340 and the most bearish at JP¥1,910 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tosoh's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 8.2% growth on an annualised basis. That is in line with its 7.9% 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 it's pretty clear that Tosoh is forecast to grow substantially faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.

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. We have estimates - from multiple Tosoh analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Tosoh's balance sheet, and whether we think Tosoh is carrying too much debt, for 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.