Results: LY Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for LY Corporation (TSE:4689) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.9% to JP¥499. It looks like a credible result overall - although revenues of JP¥503b were what the analysts expected, LY surprised by delivering a (statutory) profit of JP¥5.69 per share, an impressive 33% above what was forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for LY

Taking into account the latest results, the consensus forecast from LY's 13 analysts is for revenues of JP¥2.08t in 2026. This reflects a solid 9.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 39% to JP¥23.10. Before this earnings report, the analysts had been forecasting revenues of JP¥2.08t and earnings per share (EPS) of JP¥23.17 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.

There were no changes to revenue or earnings estimates or the price target of JP¥512, suggesting that the company has met expectations in its recent result. 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. The most optimistic LY analyst has a price target of JP¥650 per share, while the most pessimistic values it at JP¥300. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that LY's revenue growth is expected to slow, with the forecast 7.5% annualised growth rate until the end of 2026 being well below the historical 13% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.0% annually. So it's pretty clear that, while LY's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥512, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for LY going out to 2027, and you can see them free on our platform here.

You can also see whether LY is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.