Komeri Co.,Ltd. (TSE:8218) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?

The full-year results for Komeri Co.,Ltd. (TSE:8218) were released last week, making it a good time to revisit its performance. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥365b, statutory earnings were in line with expectations, at JP¥289 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, KomeriLtd's three analysts are now forecasting revenues of JP¥393.0b in 2026. This would be a modest 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.4% to JP¥316. In the lead-up to this report, the analysts had been modelling revenues of JP¥380.7b and earnings per share (EPS) of JP¥309 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Check out our latest analysis for KomeriLtd

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥3,300, suggesting that the forecast performance does not have a long term impact on the company'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 KomeriLtd, with the most bullish analyst valuing it at JP¥4,000 and the most bearish at JP¥2,900 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await KomeriLtd shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting KomeriLtd's growth to accelerate, with the forecast 7.6% annualised growth to the end of 2026 ranking favourably alongside historical growth of 0.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. KomeriLtd 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around KomeriLtd's earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that KomeriLtd will grow in line with the overall industry. The consensus price target held steady at JP¥3,300, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for KomeriLtd going out to 2028, and you can see them free on our platform here.

You can also view our analysis of KomeriLtd's balance sheet, and whether we think KomeriLtd is carrying too much debt, for free on our platform here.

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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.