Earnings Beat: Tokyo Seimitsu Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Tokyo Seimitsu Co., Ltd. (TSE:7729) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of JP¥32b, some 6.6% above estimates, and statutory earnings per share (EPS) coming in at JP¥113, 52% ahead of expectations. 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. 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 Tokyo Seimitsu

After the latest results, the eight analysts covering Tokyo Seimitsu are now predicting revenues of JP¥159.0b in 2026. If met, this would reflect a reasonable 6.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to drop 12% to JP¥582 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥157.4b and earnings per share (EPS) of JP¥573 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of JP¥8,786, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Tokyo Seimitsu analyst has a price target of JP¥11,300 per share, while the most pessimistic values it at JP¥7,900. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tokyo Seimitsu's past performance and to peers in the same industry. We would highlight that Tokyo Seimitsu's revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tokyo Seimitsu.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥8,786, with the latest estimates not enough to have an impact on their price targets.

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. We have estimates - from multiple Tokyo Seimitsu analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Tokyo Seimitsu is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

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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.