Tokyo Tatemono Co., Ltd. (TSE:8804) Just Recorded An Earnings Miss And Analysts Are Updating Their Numbers

The analysts might have been a bit too bullish on Tokyo Tatemono Co., Ltd. (TSE:8804), given that the company fell short of expectations when it released its quarterly results last week. Tokyo Tatemono delivered a grave earnings miss, with both revenues (JP¥90b) and statutory earnings per share (JP¥43.19) falling badly short of analyst expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Tokyo Tatemono from nine analysts is for revenues of JP¥516.3b in 2026. If met, it would imply a huge 28% increase on its revenue over the past 12 months. Statutory per share are forecast to be JP¥285, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥515.1b and earnings per share (EPS) of JP¥279 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Tokyo Tatemono

There's been no major changes to the consensus price target of JP¥3,138, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Tokyo Tatemono, with the most bullish analyst valuing it at JP¥3,740 and the most bearish at JP¥2,500 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 Tokyo Tatemono's growth to accelerate, with the forecast 22% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tokyo Tatemono to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Tokyo Tatemono's earnings potential next year. 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¥3,138, 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. We have forecasts for Tokyo Tatemono going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Tokyo Tatemono (including 1 which is a bit unpleasant) .

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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.