Revenue Beat: Daiwabo Holdings Co., Ltd. Beat Analyst Estimates By 7.8%

It's been a pretty great week for Daiwabo Holdings Co., Ltd. (TSE:3107) shareholders, with its shares surging 12% to JP¥3,102 in the week since its latest interim results. It was a workmanlike result, with revenues of JP¥517b coming in 7.8% ahead of expectations, and statutory earnings per share of JP¥45.82, in line with analyst appraisals. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Daiwabo Holdings

Taking into account the latest results, the current consensus from Daiwabo Holdings' two analysts is for revenues of JP¥1.10t in 2025. This would reflect a reasonable 6.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 347% to JP¥256. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.05t and earnings per share (EPS) of JP¥251 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥3,750, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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 Daiwabo Holdings' growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Daiwabo Holdings is expected to grow much faster than its 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 Daiwabo Holdings following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on Daiwabo Holdings. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Daiwabo Holdings going out as far as 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Daiwabo Holdings 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.