Daiichikosho Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Daiichikosho Co., Ltd. (TSE:7458) recently reported its half-yearly numbers. Revenues were in line with forecasts, at JP¥40b, although statutory earnings per share came in 16% below what the analysts expected, at JP¥25.15 per share. 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.

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Taking into account the latest results, the consensus forecast from Daiichikosho's dual analysts is for revenues of JP¥163.5b in 2026. This reflects an okay 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to sink 16% to JP¥119 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥163.9b and earnings per share (EPS) of JP¥138 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

Check out our latest analysis for Daiichikosho

The average price target fell 5.6% to JP¥1,700, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. We would highlight that Daiichikosho's revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Daiichikosho.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Daiichikosho's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 analyst estimates for Daiichikosho going out as far as 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Daiichikosho has 2 warning signs (and 1 which is significant) we think you should know about.

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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.