Daiwa House Industry Co., Ltd. Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that Daiwa House Industry Co., Ltd. (TSE:1925) filed its full-year result this time last week. The early response was not positive, with shares down 4.4% to JP¥4,930 in the past week. Revenues were JP¥5.4t, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥514 were also better than expected, beating analyst predictions by 16%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the eight analysts covering Daiwa House Industry are now predicting revenues of JP¥5.58t in 2026. If met, this would reflect a satisfactory 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 9.0% to JP¥478 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥5.52t and earnings per share (EPS) of JP¥484 in 2026. 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.

View our latest analysis for Daiwa House Industry

There were no changes to revenue or earnings estimates or the price target of JP¥5,301, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Daiwa House Industry at JP¥5,900 per share, while the most bearish prices it at JP¥5,000. 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. It's pretty clear that there is an expectation that Daiwa House Industry's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 6.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.0% 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 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, 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¥5,301, 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. At Simply Wall St, we have a full range of analyst estimates for Daiwa House Industry going out to 2028, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Daiwa House Industry (1 is a bit concerning!) that we have uncovered.

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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.