Daito Trust Construction Co.,Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Daito Trust Construction Co.,Ltd. (TSE:1878) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Daito Trust ConstructionLtd reported JP¥478b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥364 beat expectations, being 9.5% higher than what the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Daito Trust ConstructionLtd from eight analysts is for revenues of JP¥1.97t in 2026. If met, it would imply an okay 5.2% increase on its revenue over the past 12 months. Statutory per share are forecast to be JP¥1,385, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥1.97t and earnings per share (EPS) of JP¥1,385 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Daito Trust ConstructionLtd

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥16,804. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Daito Trust ConstructionLtd, with the most bullish analyst valuing it at JP¥19,000 and the most bearish at JP¥13,600 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Daito Trust ConstructionLtd shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Daito Trust ConstructionLtd's growth to accelerate, with the forecast 6.9% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Daito Trust ConstructionLtd to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Daito Trust ConstructionLtd analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Daito Trust ConstructionLtd that you need to take into consideration.

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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.