Tri Chemical Laboratories Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Tri Chemical Laboratories Inc. (TSE:4369) defied analyst predictions to release its half-year results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 6.3% to hit JP¥8.0b. Tri Chemical Laboratories also reported a statutory profit of JP¥37.51, which was an impressive 43% above what the analysts had forecast. 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 Tri Chemical Laboratories

After the latest results, the five analysts covering Tri Chemical Laboratories are now predicting revenues of JP¥16.7b in 2025. If met, this would reflect a substantial 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 45% to JP¥136. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥15.9b and earnings per share (EPS) of JP¥130 in 2025. 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.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥6,050, suggesting that the forecast performance does not have a long term impact on the company's 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. There are some variant perceptions on Tri Chemical Laboratories, with the most bullish analyst valuing it at JP¥8,200 and the most bearish at JP¥5,100 per share. 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.

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 Tri Chemical Laboratories' growth to accelerate, with the forecast 51% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Tri Chemical Laboratories is expected to grow much faster than its 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 Tri Chemical Laboratories following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at JP¥6,050, 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 Tri Chemical Laboratories going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Tri Chemical Laboratories .

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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.