Results: Rakus Co., Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for Rakus Co., Ltd. (TSE:3923) shareholders, because the company has just released its latest yearly results, and the shares gained 7.8% to JP¥2,083. Rakus reported JP¥38b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥23.10 beat expectations, being 6.9% higher than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Rakus

After the latest results, the nine analysts covering Rakus are now predicting revenues of JP¥48.4b in 2025. If met, this would reflect a major 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 57% to JP¥36.19. In the lead-up to this report, the analysts had been modelling revenues of JP¥48.4b and earnings per share (EPS) of JP¥35.43 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥2,589, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Rakus analyst has a price target of JP¥3,100 per share, while the most pessimistic values it at JP¥1,500. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 28% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Rakus is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Rakus following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥2,589, 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. At Simply Wall St, we have a full range of analyst estimates for Rakus going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Rakus that we have uncovered.

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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.

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