Adastria Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Last week, you might have seen that Adastria Co., Ltd. (TSE:2685) released its annual result to the market. The early response was not positive, with shares down 3.5% to JP¥3,720 in the past week. The result was positive overall - although revenues of JP¥276b were in line with what the analysts predicted, Adastria surprised by delivering a statutory profit of JP¥298 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Adastria

Following the latest results, Adastria's four analysts are now forecasting revenues of JP¥291.1b in 2025. This would be a modest 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 4.5% to JP¥285 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥285.8b and earnings per share (EPS) of JP¥288 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.

The analysts reconfirmed their price target of JP¥4,117, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Adastria at JP¥4,700 per share, while the most bearish prices it at JP¥3,800. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Adastria is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Adastria's growth to accelerate, with the forecast 5.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. Adastria is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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 real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Adastria 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 1 warning sign for Adastria 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.