One Gunosy Inc. (TSE:6047) Analyst Just Cut Their EPS Forecasts

One thing we could say about the covering analyst on Gunosy Inc. (TSE:6047) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the downgrade, the most recent consensus for Gunosy from its solo analyst is for revenues of JP¥7.0b in 2026 which, if met, would be a solid 13% increase on its sales over the past 12 months. Statutory earnings per share are presumed to accumulate 8.2% to JP¥12.50. Before this latest update, the analyst had been forecasting revenues of JP¥7.9b and earnings per share (EPS) of JP¥18.70 in 2026. Indeed, we can see that the analyst is a lot more bearish about Gunosy's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Gunosy

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. For example, we noticed that Gunosy's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 17% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 11% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. So it looks like Gunosy is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. While the analyst did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After a cut like that, investors could be forgiven for thinking the analyst is a lot more bearish on Gunosy, and a few readers might choose to steer clear of the stock.

That said, this broker might have good reason to be negative on Gunosy, given the risk of cutting its dividend. Learn more, and discover the 1 other risk we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.