Daiichi Sankyo Company, Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for Daiichi Sankyo Company, Limited (TSE:4568) shareholders, because the company has just released its latest yearly results, and the shares gained 8.1% to JP¥5,010. It looks like a credible result overall - although revenues of JP¥1.6t were in line with what the analysts predicted, Daiichi Sankyo Company surprised by delivering a statutory profit of JP¥105 per share, a notable 20% above expectations. 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.

Check out our latest analysis for Daiichi Sankyo Company

After the latest results, the 14 analysts covering Daiichi Sankyo Company are now predicting revenues of JP¥1.76t in 2025. If met, this would reflect a decent 9.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 2.4% to JP¥102 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.76t and earnings per share (EPS) of JP¥100 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥5,673, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Daiichi Sankyo Company analyst has a price target of JP¥6,300 per share, while the most pessimistic values it at JP¥4,200. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Daiichi Sankyo Company's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 9.9% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.8% annually. So it's pretty clear that Daiichi Sankyo Company is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Daiichi Sankyo Company's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Daiichi Sankyo Company. Long-term earnings power is much more important than next year's profits. We have forecasts for Daiichi Sankyo Company going out to 2027, and you can see them free on our platform here.

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

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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.