Dentsu Soken Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Investors in Dentsu Soken Inc. (TSE:4812) had a good week, as its shares rose 9.8% to close at JP¥7,640 following the release of its quarterly results. Revenues JP¥41b disappointed slightly, at4.4% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of JP¥61.96 coming in 13% above what was anticipated. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the three analysts covering Dentsu Soken are now predicting revenues of JP¥185.1b in 2026. If met, this would reflect a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 14% to JP¥295. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥186.0b and earnings per share (EPS) of JP¥293 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.

View our latest analysis for Dentsu Soken

There were no changes to revenue or earnings estimates or the price target of JP¥7,300, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Dentsu Soken, with the most bullish analyst valuing it at JP¥8,100 and the most bearish at JP¥6,400 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 analysts are definitely expecting Dentsu Soken's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 9.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dentsu Soken to grow faster than 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. 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¥7,300, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Dentsu Soken. 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 Dentsu Soken going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Dentsu Soken's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.