Here's What Analysts Are Forecasting For Yamato Kogyo Co., Ltd. (TSE:5444) After Its Annual Results

Last week saw the newest annual earnings release from Yamato Kogyo Co., Ltd. (TSE:5444), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥168b, statutory earnings beat expectations 2.8%, with Yamato Kogyo reporting profits of JP¥503 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Yamato Kogyo from four analysts is for revenues of JP¥181.7b in 2026. If met, it would imply a reasonable 8.0% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 56% to JP¥798. Before this earnings report, the analysts had been forecasting revenues of JP¥182.1b and earnings per share (EPS) of JP¥797 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.

See our latest analysis for Yamato Kogyo

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥8,825. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Yamato Kogyo analyst has a price target of JP¥9,300 per share, while the most pessimistic values it at JP¥8,200. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Yamato Kogyo's growth to accelerate, with the forecast 8.0% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.2% annually. So it's clear with the acceleration in growth, Yamato Kogyo is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Yamato Kogyo's revenue is expected to perform better than the wider industry. The consensus price target held steady at JP¥8,825, 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 Yamato Kogyo analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Yamato Kogyo 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.