Results: Kakaku.com, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Kakaku.com, Inc. (TSE:2371) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.8% to hit JP¥18b. Kakaku.com reported statutory earnings per share (EPS) JP¥24.38, which was a notable 17% above what the analysts had forecast. 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.

View our latest analysis for Kakaku.com

Taking into account the latest results, the consensus forecast from Kakaku.com's eleven analysts is for revenues of JP¥75.6b in 2025. This reflects a notable 9.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 6.1% to JP¥103. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥75.1b and earnings per share (EPS) of JP¥102 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¥2,276, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Kakaku.com at JP¥2,600 per share, while the most bearish prices it at JP¥1,980. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 2025 noticeably faster than its historical growth of 3.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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. 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..

Even so, be aware that Kakaku.com is showing 1 warning sign in our investment analysis , you should know about...

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.