Takashimaya Company, Limited Just Missed Revenue By 8.8%: Here's What Analysts Think Will Happen Next

It's been a good week for Takashimaya Company, Limited (TSE:8233) shareholders, because the company has just released its latest interim results, and the shares gained 3.1% to JP¥1,255. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥123b, statutory earnings were in line with expectations, at JP¥100 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Takashimaya Company

Taking into account the latest results, the consensus forecast from Takashimaya Company's five analysts is for revenues of JP¥508.2b in 2025. This reflects a huge 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.3% to JP¥124. In the lead-up to this report, the analysts had been modelling revenues of JP¥517.4b and earnings per share (EPS) of JP¥119 in 2025. So the consensus seems to have become somewhat more optimistic on Takashimaya Company's earnings potential following these results.

The consensus price target was unchanged at JP¥1,475, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Takashimaya Company at JP¥2,000 per share, while the most bearish prices it at JP¥1,200. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Takashimaya Company is forecast to grow faster in the future than it has in the past, with revenues expected to display 58% annualised growth until the end of 2025. If achieved, this would be a much better result than the 16% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.5% annually. Not only are Takashimaya Company's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Takashimaya Company following these results. 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¥1,475, 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 estimates - from multiple Takashimaya Company analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether Takashimaya Company is carrying too much debt, and whether its balance sheet is healthy, 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.