Optorun Co.,Ltd. Just Missed EPS By 58%: Here's What Analysts Think Will Happen Next

The quarterly results for Optorun Co.,Ltd. (TSE:6235) were released last week, making it a good time to revisit its performance. Results overall were not great, with earnings of JP¥19.33 per share falling drastically short of analyst expectations. Meanwhile revenues hit JP¥7.9b and were slightly better than forecasts. 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.

Our free stock report includes 1 warning sign investors should be aware of before investing in OptorunLtd. Read for free now.

After the latest results, the two analysts covering OptorunLtd are now predicting revenues of JP¥36.8b in 2025. If met, this would reflect a sizeable 27% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 64% to JP¥152. In the lead-up to this report, the analysts had been modelling revenues of JP¥37.8b and earnings per share (EPS) of JP¥155 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

View our latest analysis for OptorunLtd

The consensus price target fell 12% to JP¥2,300, with the weaker earnings outlook clearly leading valuation estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that OptorunLtd is forecast to grow faster in the future than it has in the past, with revenues expected to display 37% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.4% 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 7.3% annually. Not only are OptorunLtd'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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of OptorunLtd's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for OptorunLtd you should be aware 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.