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 interim results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 2.5% to hit JP¥112b. Tokyo Ohka Kogyo reported statutory earnings per share (EPS) JP¥50.92, which was a notable 11% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, Tokyo Ohka Kogyo's 15 analysts are now forecasting revenues of JP¥227.2b in 2025. This would be a credible 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 3.8% to JP¥235. In the lead-up to this report, the analysts had been modelling revenues of JP¥224.1b and earnings per share (EPS) of JP¥225 in 2025. So the consensus seems to have become somewhat more optimistic on Tokyo Ohka Kogyo's earnings potential following these results.

See our latest analysis for Tokyo Ohka Kogyo

The consensus price target was unchanged at JP¥4,681, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Tokyo Ohka Kogyo, with the most bullish analyst valuing it at JP¥5,520 and the most bearish at JP¥3,900 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Tokyo Ohka Kogyo's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.1% annually. 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Tokyo Ohka Kogyo's earnings potential next year. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Tokyo Ohka Kogyo going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Tokyo Ohka Kogyo Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.