Izumi Co., Ltd. (TSE:8273) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

Izumi Co., Ltd. (TSE:8273) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to JP¥2,991 in the week after its latest quarterly results. Results overall were respectable, with statutory earnings of JP¥286 per share roughly in line with what the analysts had forecast. Revenues of JP¥135b came in 4.0% ahead of analyst predictions. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Izumi

Following the latest results, Izumi's three analysts are now forecasting revenues of JP¥579.7b in 2026. This would be a meaningful 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 13% to JP¥282. Before this earnings report, the analysts had been forecasting revenues of JP¥579.0b and earnings per share (EPS) of JP¥290 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥3,933, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Izumi analyst has a price target of JP¥4,500 per share, while the most pessimistic values it at JP¥3,600. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Izumi is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Izumi's past performance and to peers in the same industry. For example, we noticed that Izumi's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 13% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 11% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.4% per year. Not only are Izumi'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 to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Izumi going out to 2027, and you can see them free on our platform here..

You can also see whether Izumi 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.