Earnings Update: Kakaku.com, Inc. (TSE:2371) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

It's been a good week for Kakaku.com, Inc. (TSE:2371) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.3% to JP¥2,531. Kakaku.com beat revenue expectations by 2.7%, at JP¥20b. Statutory earnings per share (EPS) came in at JP¥27.86, some 2.4% short of analyst estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Kakaku.com

After the latest results, the eleven analysts covering Kakaku.com are now predicting revenues of JP¥86.0b in 2026. If met, this would reflect a meaningful 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 17% to JP¥121. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥85.8b and earnings per share (EPS) of JP¥122 in 2026. 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¥2,682, showing that the business is executing well and in line with expectations. 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 Kakaku.com analyst has a price target of JP¥3,000 per share, while the most pessimistic values it at JP¥2,400. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's clear from the latest estimates that Kakaku.com's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Kakaku.com. Long-term earnings power is much more important than next year's profits. We have forecasts 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.