Results: Rakus Co., Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a pretty great week for Rakus Co., Ltd. (TSE:3923) shareholders, with its shares surging 17% to JP¥2,163 in the week since its latest quarterly results. Revenues were JP¥11b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥11.43, an impressive 42% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Rakus

Taking into account the latest results, the current consensus from Rakus' nine analysts is for revenues of JP¥48.5b in 2025. This would reflect a decent 17% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 20% to JP¥36.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥48.4b and earnings per share (EPS) of JP¥36.29 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥2,663, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Rakus, with the most bullish analyst valuing it at JP¥3,100 and the most bearish at JP¥1,500 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Rakus'historical trends, as the 24% annualised revenue growth to the end of 2025 is roughly in line with the 29% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.8% annually. So it's pretty clear that Rakus is forecast to grow substantially faster than its industry.

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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Rakus. Long-term earnings power is much more important than next year's profits. 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..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Rakus that you should be aware 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.