Earnings Miss: Daiwa House Industry Co., Ltd. Missed EPS By 7.8% And Analysts Are Revising Their Forecasts

Daiwa House Industry Co., Ltd. (TSE:1925) missed earnings with its latest half-yearly results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 3.0% short of analyst estimates at JP¥2.6t, and statutory earnings of JP¥223 per share missed forecasts by 7.8%. 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. 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¥5.62t in 2026. If met, this would reflect a reasonable 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 5.5% to JP¥468 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥5.63t and earnings per share (EPS) of JP¥472 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.

See our latest analysis for Daiwa House Industry

There were no changes to revenue or earnings estimates or the price target of JP¥5,659, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Daiwa House Industry at JP¥6,300 per share, while the most bearish prices it at JP¥5,000. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 7.6% growth on an annualised basis. That is in line with its 6.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.1% per year. So it's pretty clear that Daiwa House Industry is forecast to grow substantially faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥5,659, 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. We have forecasts for Daiwa House Industry going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Daiwa House Industry (1 doesn't sit too well with us!) 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.