Ichigo Inc. Just Missed Revenue By 5.8%: Here's What Analysts Think Will Happen Next

Ichigo Inc. (TSE:2337) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥84b, statutory earnings beat expectations 2.9%, with Ichigo reporting profits of JP¥34.86 per share. 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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Following the latest results, Ichigo's three analysts are now forecasting revenues of JP¥95.8b in 2026. This would be a meaningful 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.0% to JP¥37.25. Before this earnings report, the analysts had been forecasting revenues of JP¥96.3b and earnings per share (EPS) of JP¥36.19 in 2026. So the consensus seems to have become somewhat more optimistic on Ichigo's earnings potential following these results.

View our latest analysis for Ichigo

There's been no major changes to the consensus price target of JP¥460, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Ichigo, with the most bullish analyst valuing it at JP¥570 and the most bearish at JP¥390 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Ichigo's growth to accelerate, with the forecast 15% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Ichigo is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ichigo following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Ichigo. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Ichigo analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Ichigo (1 makes us a bit uncomfortable!) that you need to be mindful 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.