Rakus Co., Ltd. Just Beat EPS By 18%: Here's What Analysts Think Will Happen Next

Investors in Rakus Co., Ltd. (TSE:3923) had a good week, as its shares rose 7.1% to close at JP¥2,112 following the release of its quarterly results. It looks like a credible result overall - although revenues of JP¥13b were in line with what the analysts predicted, Rakus surprised by delivering a statutory profit of JP¥10.81 per share, a notable 18% above expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Rakus

After the latest results, the nine analysts covering Rakus are now predicting revenues of JP¥59.9b in 2026. If met, this would reflect a sizeable 30% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 54% to JP¥62.06. Before this earnings report, the analysts had been forecasting revenues of JP¥60.0b and earnings per share (EPS) of JP¥62.05 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,731. 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. There are some variant perceptions on Rakus, with the most bullish analyst valuing it at JP¥3,100 and the most bearish at JP¥2,100 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 23% growth on an annualised basis. That is in line with its 29% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.0% annually. So it's pretty clear that Rakus is forecast to grow substantially faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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

We also provide an overview of the Rakus Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.