Tokyo Seimitsu Co., Ltd. Just Missed EPS By 20%: Here's What Analysts Think Will Happen Next

Tokyo Seimitsu Co., Ltd. (TSE:7729) just released its latest quarterly report and things are not looking great. It looks like a clear earnings miss, with both revenues and earnings falling well short of analyst predictions. Revenues of JP¥31b missed by 13%, and statutory earnings per share of JP¥79.77 fell short of forecasts by 20%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Tokyo Seimitsu from nine analysts is for revenues of JP¥160.1b in 2026. If met, it would imply a reasonable 5.5% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dip 9.3% to JP¥566 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥160.4b and earnings per share (EPS) of JP¥568 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Tokyo Seimitsu

There were no changes to revenue or earnings estimates or the price target of JP¥9,700, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Tokyo Seimitsu at JP¥12,000 per share, while the most bearish prices 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.

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. It's pretty clear that there is an expectation that Tokyo Seimitsu's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 9.4% over the past five years. Compare this to the 56 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.8% per year. Factoring in the forecast slowdown in growth, it looks like Tokyo Seimitsu is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥9,700, 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 Tokyo Seimitsu going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Tokyo Seimitsu .

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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.