Analysts Have Made A Financial Statement On Kakaku.com, Inc.'s (TSE:2371) Full-Year Report

Investors in Kakaku.com, Inc. (TSE:2371) had a good week, as its shares rose 5.9% to close at JP¥1,913 following the release of its full-year results. Kakaku.com reported JP¥67b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥90.45 beat expectations, being 2.1% higher than what the analysts expected. 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 Kakaku.com after the latest results.

See our latest analysis for Kakaku.com

Taking into account the latest results, the current consensus from Kakaku.com's ten analysts is for revenues of JP¥73.7b in 2025. This would reflect a meaningful 10% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 8.7% to JP¥99.56. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥74.5b and earnings per share (EPS) of JP¥101 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.

The analysts reconfirmed their price target of JP¥2,030, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Kakaku.com, with the most bullish analyst valuing it at JP¥2,300 and the most bearish at JP¥1,750 per share. This is a very narrow spread of estimates, implying either that Kakaku.com is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kakaku.com's past performance and to peers in the same industry. It's clear from the latest estimates that Kakaku.com's rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Kakaku.com is expected to grow much faster than its 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. 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. At Simply Wall St, we have a full range of analyst estimates for Kakaku.com going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Kakaku.com's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.