Results: Daiichikosho Co., Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

Last week, you might have seen that Daiichikosho Co., Ltd. (TSE:7458) released its yearly result to the market. The early response was not positive, with shares down 5.6% to JP¥1,546 in the past week. Revenues were JP¥153b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥173 were also better than expected, beating analyst predictions by 13%. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst latest (statutory) post-earnings forecasts for next year.

Our free stock report includes 3 warning signs investors should be aware of before investing in Daiichikosho. Read for free now.

Following the latest results, Daiichikosho's sole analyst are now forecasting revenues of JP¥164.0b in 2026. This would be a reasonable 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to crater 30% to JP¥122 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of JP¥157.9b and earnings per share (EPS) of JP¥134 in 2026. So it's pretty clear consensus is mixed on Daiichikosho after the latest results; whilethe analyst lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

Check out our latest analysis for Daiichikosho

The consensus price target fell 5.6% to JP¥1,700, suggesting that the analyst are primarily focused on earnings as the driver of value for this business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analyst, with revenue forecast to display 7.1% growth on an annualised basis. That is in line with its 7.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 10% annually. So it's pretty clear that Daiichikosho is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Daiichikosho. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Daiichikosho's future valuation.

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. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

You still need to take note of risks, for example - Daiichikosho has 3 warning signs (and 1 which makes us a bit uncomfortable) 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.