Kakaku.com, Inc. (TSE:2371) Just Released Its Half-Year Results And Analysts Are Updating Their Estimates

It's been a pretty great week for Kakaku.com, Inc. (TSE:2371) shareholders, with its shares surging 11% to JP¥2,574 in the week since its latest interim results. Revenues of JP¥36b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥24.14, missing estimates by 2.4%. 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.

Check out our latest analysis for Kakaku.com

Taking into account the latest results, the most recent consensus for Kakaku.com from eleven analysts is for revenues of JP¥76.5b in 2025. If met, it would imply a modest 6.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 5.9% to JP¥106. Before this earnings report, the analysts had been forecasting revenues of JP¥76.4b and earnings per share (EPS) of JP¥106 in 2025. 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.

The analysts reconfirmed their price target of JP¥2,533, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Kakaku.com at JP¥2,900 per share, while the most bearish prices it at JP¥1,980. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's clear from the latest estimates that Kakaku.com's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kakaku.com to grow 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. 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 Kakaku.com going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Kakaku.com Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.