Analyst Estimates: Here's What Brokers Think Of Toho Co., Ltd. (TSE:9602) After Its Interim Report

Shareholders might have noticed that Toho Co., Ltd. (TSE:9602) filed its interim result this time last week. The early response was not positive, with shares down 8.8% to JP¥8,904 in the past week. Results overall were respectable, with statutory earnings of JP¥255 per share roughly in line with what the analysts had forecast. Revenues of JP¥192b came in 3.7% ahead of analyst predictions. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Toho's nine analysts are now forecasting revenues of JP¥351.0b in 2026. This would be a reasonable 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.2% to JP¥312. Before this earnings report, the analysts had been forecasting revenues of JP¥339.1b and earnings per share (EPS) of JP¥312 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

See our latest analysis for Toho

It may not be a surprise to see thatthe analysts have reconfirmed their price target of JP¥9,478, implying that the uplift in revenue is not expected to greatly contribute to Toho's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Toho analyst has a price target of JP¥11,200 per share, while the most pessimistic values it at JP¥7,700. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Toho's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.8% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Toho is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at JP¥9,478, 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 Toho going out to 2028, and you can see them free on our platform here.

We also provide an overview of the Toho Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.