Tokyo Ohka Kogyo Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, Tokyo Ohka Kogyo Co., Ltd. (TSE:4186) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of JP¥54b, some 2.6% above estimates, and statutory earnings per share (EPS) coming in at JP¥62.91, 65% ahead of expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the 16 analysts covering Tokyo Ohka Kogyo are now predicting revenues of JP¥221.9b in 2025. If met, this would reflect an okay 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 4.7% to JP¥212 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥222.8b and earnings per share (EPS) of JP¥211 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.

View our latest analysis for Tokyo Ohka Kogyo

The analysts reconfirmed their price target of JP¥4,275, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Tokyo Ohka Kogyo, with the most bullish analyst valuing it at JP¥5,490 and the most bearish at JP¥3,200 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Tokyo Ohka Kogyo's revenue growth is expected to slow, with the forecast 7.4% annualised growth rate until the end of 2025 being well below the historical 12% 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% per year. So it's pretty clear that, while Tokyo Ohka Kogyo's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. 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¥4,275, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Tokyo Ohka Kogyo. Long-term earnings power is much more important than next year's profits. We have forecasts for Tokyo Ohka Kogyo going out to 2027, and you can see them free on our platform here.

Even so, be aware that Tokyo Ohka Kogyo is showing 2 warning signs in our investment analysis , you should know about...

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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.