Daiwa House Industry Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Daiwa House Industry Co., Ltd. (TSE:1925) just released its latest annual results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.6% to hit JP¥5.2t. Statutory earnings per share (EPS) came in at JP¥457, some 9.3% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Daiwa House Industry

Following last week's earnings report, Daiwa House Industry's eight analysts are forecasting 2025 revenues to be JP¥5.16t, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 9.8% to JP¥421 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥5.13t and earnings per share (EPS) of JP¥425 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥4,630. 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 Daiwa House Industry, with the most bullish analyst valuing it at JP¥5,000 and the most bearish at JP¥4,300 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Daiwa House Industry is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Daiwa House Industry's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.9% annualised decline to the end of 2025. That is a notable change from historical growth of 4.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.8% per year. It's pretty clear that Daiwa House Industry's revenues are expected to perform substantially worse 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. 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¥4,630, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Daiwa House Industry going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Daiwa House Industry (1 is a bit unpleasant) you should be aware 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.