Here's What Analysts Are Forecasting For Daiwa House Industry Co., Ltd. (TSE:1925) After Its Interim Results

The half-year results for Daiwa House Industry Co., Ltd. (TSE:1925) were released last week, making it a good time to revisit its performance. Daiwa House Industry reported JP¥2.7t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥245 beat expectations, being 4.2% higher than what the analysts 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Daiwa House Industry

Taking into account the latest results, Daiwa House Industry's nine analysts currently expect revenues in 2025 to be JP¥5.36t, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 7.9% to JP¥436 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥5.34t and earnings per share (EPS) of JP¥436 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥4,864, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Daiwa House Industry, with the most bullish analyst valuing it at JP¥5,200 and the most bearish at JP¥4,400 per share. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 2025 expected to display 1.9% growth on an annualised basis. This is compared to a historical growth rate of 5.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Daiwa House Industry is also expected to grow slower than other industry participants.

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¥4,864, 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..

It is also worth noting that we have found 2 warning signs for Daiwa House Industry (1 shouldn't be ignored!) 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.