Tokyo Tatemono Co., Ltd. Just Missed EPS By 26%: Here's What Analysts Think Will Happen Next

As you might know, Tokyo Tatemono Co., Ltd. (TSE:8804) last week released its latest quarterly, and things did not turn out so great for shareholders. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of JP¥116b missed by 14%, and statutory earnings per share of JP¥55.82 fell short of forecasts by 26%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Tokyo Tatemono

After the latest results, the nine analysts covering Tokyo Tatemono are now predicting revenues of JP¥487.9b in 2024. If met, this would reflect a substantial 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 23% to JP¥230. Before this earnings report, the analysts had been forecasting revenues of JP¥487.9b and earnings per share (EPS) of JP¥229 in 2024. 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¥2,740, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Tokyo Tatemono at JP¥3,100 per share, while the most bearish prices it at JP¥2,430. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Tokyo Tatemono's rate of growth is expected to accelerate meaningfully, with the forecast 43% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Tokyo Tatemono is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still 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.

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 estimates - from multiple Tokyo Tatemono analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Tokyo Tatemono has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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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.