Results: Tokyo Tatemono Co., Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

Tokyo Tatemono Co., Ltd. (TSE:8804) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Tokyo Tatemono reported JP¥464b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥316 beat expectations, being 5.6% 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Tokyo Tatemono

Following last week's earnings report, Tokyo Tatemono's eight analysts are forecasting 2025 revenues to be JP¥467.6b, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 17% to JP¥262 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥468.5b and earnings per share (EPS) of JP¥258 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,839, 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. The most optimistic Tokyo Tatemono analyst has a price target of JP¥3,210 per share, while the most pessimistic values it at JP¥2,600. This is a very narrow spread of estimates, implying either that Tokyo Tatemono is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Tokyo Tatemono's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2025 being well below the historical 7.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tokyo Tatemono.

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. 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¥2,839, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Tokyo Tatemono. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Tokyo Tatemono going out to 2027, 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 4 warning signs for Tokyo Tatemono (2 are significant!) that you need to be mindful of.

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.