JP¥1,800: That's What Analysts Think Daiichikosho Co., Ltd. (TSE:7458) Is Worth After Its Latest Results

Last week, you might have seen that Daiichikosho Co., Ltd. (TSE:7458) released its third-quarter result to the market. The early response was not positive, with shares down 9.5% to JP¥1,613 in the past week. It looks like the results were a bit of a negative overall. While revenues of JP¥40b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.1% to hit JP¥37.42 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Daiichikosho

After the latest results, the two analysts covering Daiichikosho are now predicting revenues of JP¥157.9b in 2026. If met, this would reflect a modest 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to descend 10% to JP¥133 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥159.8b and earnings per share (EPS) of JP¥138 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The average price target fell 38% to JP¥1,800, with reduced earnings forecasts clearly tied to a lower valuation estimate.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Daiichikosho's past performance and to peers in the same industry. We would highlight that Daiichikosho's revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2026 being well below the historical 5.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Daiichikosho. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Daiichikosho going out as far as 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Daiichikosho (1 is concerning!) that you need to be mindful of.

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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.