Here's What Analysts Are Forecasting For Eisai Co., Ltd. (TSE:4523) After Its Annual Results

Eisai Co., Ltd. (TSE:4523) defied analyst predictions to release its full-year results, which were ahead of market expectations. The company beat expectations with revenues of JP¥789b arriving 2.2% ahead of forecasts. Statutory earnings per share (EPS) were JP¥164, 2.8% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 1 warning sign about Eisai. View them for free.

Taking into account the latest results, Eisai's 14 analysts currently expect revenues in 2026 to be JP¥801.9b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be JP¥166, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥812.2b and earnings per share (EPS) of JP¥184 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Eisai

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥4,839, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Eisai analyst has a price target of JP¥7,500 per share, while the most pessimistic values it at JP¥3,300. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We would highlight that Eisai's revenue growth is expected to slow, with the forecast 1.6% annualised growth rate until the end of 2026 being well below the historical 2.5% 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 3.7% 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 Eisai.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥4,839, 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. At Simply Wall St, we have a full range of analyst estimates for Eisai going out to 2028, 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 1 warning sign for Eisai 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.