Tokyo Ohka Kogyo Co., Ltd. Just Recorded A 23% EPS Beat: Here's What Analysts Are Forecasting Next

Tokyo Ohka Kogyo Co., Ltd. (TSE:4186) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of JP¥61b, some 4.8% above estimates, and statutory earnings per share (EPS) coming in at JP¥70.45, 23% 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Tokyo Ohka Kogyo's 15 analysts is for revenues of JP¥251.3b in 2026. This reflects a solid 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 6.2% to JP¥258. Before this earnings report, the analysts had been forecasting revenues of JP¥248.9b and earnings per share (EPS) of JP¥251 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Tokyo Ohka Kogyo

The consensus price target was unchanged at JP¥5,179, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Tokyo Ohka Kogyo at JP¥7,500 per share, while the most bearish prices it at JP¥3,900. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. 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 2026 expected to display 8.4% 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 4.2% annually. Even after the forecast slowdown in growth, it seems obvious that Tokyo Ohka Kogyo is also expected to grow faster than the wider industry.

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. The consensus price target held steady at JP¥5,179, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Tokyo Ohka Kogyo analysts - 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.