Daiwa House Industry Co., Ltd. Just Beat EPS By 65%: Here's What Analysts Think Will Happen Next

Daiwa House Industry Co., Ltd. (TSE:1925) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 5.7% to hit JP¥1.3t. Daiwa House Industry also reported a statutory profit of JP¥128, which was an impressive 65% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Daiwa House Industry after the latest results.

View our latest analysis for Daiwa House Industry

Taking into account the latest results, the most recent consensus for Daiwa House Industry from nine analysts is for revenues of JP¥5.51t in 2026. If met, it would imply a modest 2.2% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decrease 4.8% to JP¥485 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥5.51t and earnings per share (EPS) of JP¥482 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,146. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Daiwa House Industry, with the most bullish analyst valuing it at JP¥5,600 and the most bearish at JP¥4,550 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Daiwa House Industry's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2026 being well below the historical 5.9% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Daiwa House Industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Daiwa House Industry's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥5,146, 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 Daiwa House Industry going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Daiwa House Industry (at least 1 which shouldn't be ignored) , and understanding these should be part of your investment process.

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.