Revenue Beat: Toei Company, Ltd. Beat Analyst Estimates By 8.6%

Investors in Toei Company, Ltd. (TSE:9605) had a good week, as its shares rose 8.9% to close at JP¥5,620 following the release of its quarterly results. Results overall were respectable, with statutory earnings of JP¥226 per share roughly in line with what the analysts had forecast. Revenues of JP¥45b came in 8.6% 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.

Check out our latest analysis for Toei Company

Following last week's earnings report, Toei Company's three analysts are forecasting 2025 revenues to be JP¥170.9b, approximately in line with the last 12 months. Statutory per share are forecast to be JP¥229, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥166.5b and earnings per share (EPS) of JP¥207 in 2025. So it seems there's been a definite increase in optimism about Toei Company's future following the latest results, with a solid gain to the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Toei Company 7.3% to JP¥5,150on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Toei Company analyst has a price target of JP¥6,200 per share, while the most pessimistic values it at JP¥4,100. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 1.8% annualised decline to the end of 2025. That is a notable change from historical growth of 8.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.7% annually for the foreseeable future. It's pretty clear that Toei Company's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Toei Company following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Toei Company. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Toei Company going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Toei Company's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.