Earnings Update: Daiwabo Holdings Co., Ltd. (TSE:3107) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Investors in Daiwabo Holdings Co., Ltd. (TSE:3107) had a good week, as its shares rose 7.9% to close at JP¥3,050 following the release of its quarterly results. Results were roughly in line with estimates, with revenues of JP¥291b and statutory earnings per share of JP¥271. 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. 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 dual analysts covering Daiwabo Holdings are now predicting revenues of JP¥1.24t in 2026. If met, this would reflect a credible 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 2.7% to JP¥315 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.23t and earnings per share (EPS) of JP¥296 in 2026. So the consensus seems to have become somewhat more optimistic on Daiwabo Holdings' earnings potential following these results.

View our latest analysis for Daiwabo Holdings

The consensus price target was unchanged at JP¥3,750, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Daiwabo Holdings' growth to accelerate, with the forecast 5.0% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. So it's clear that despite the acceleration in growth, Daiwabo Holdings is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Daiwabo Holdings' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Daiwabo Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,750, 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 least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Daiwabo Holdings (including 1 which is potentially serious) .

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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.