Tazmo Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Tazmo Co., Ltd. (TSE:6266) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.9% to hit JP¥10b. Tazmo also reported a statutory profit of JP¥106, which was an impressive 120% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Tazmo's three analysts currently expect revenues in 2026 to be JP¥38.2b, approximately in line with the last 12 months. Statutory earnings per share are forecast to descend 10% to JP¥269 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥41.3b and earnings per share (EPS) of JP¥298 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

View our latest analysis for Tazmo

Despite the cuts to forecast earnings, there was no real change to the JP¥3,667 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. Currently, the most bullish analyst values Tazmo at JP¥4,200 per share, while the most bearish prices it at JP¥3,000. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tazmo's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.2% annualised decline to the end of 2026. That is a notable change from historical growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Tazmo is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tazmo. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥3,667, with the latest estimates not enough to have an impact on their price targets.

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 Tazmo going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Tazmo that you need to be mindful 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.