Stock Analysis

Analysts Have Made A Financial Statement On Ricoh Company, Ltd.'s (TSE:7752) Full-Year Report

TSE:7752
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Shareholders might have noticed that Ricoh Company, Ltd. (TSE:7752) filed its yearly result this time last week. The early response was not positive, with shares down 3.6% to JP¥1,308 in the past week. Revenues of JP¥2.3t were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥72.58, missing estimates by 3.6%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Ricoh Company

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TSE:7752 Earnings and Revenue Growth May 9th 2024

Following the latest results, Ricoh Company's nine analysts are now forecasting revenues of JP¥2.42t in 2025. This would be an okay 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 30% to JP¥95.73. In the lead-up to this report, the analysts had been modelling revenues of JP¥2.37t and earnings per share (EPS) of JP¥96.61 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of JP¥1,353, suggesting the analysts are focused on earnings as the driver of value creation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Ricoh Company, with the most bullish analyst valuing it at JP¥1,700 and the most bearish at JP¥1,100 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ricoh Company shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Ricoh Company'shistorical trends, as the 3.0% annualised revenue growth to the end of 2025 is roughly in line with the 3.1% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.6% annually. It's clear that while Ricoh Company's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at JP¥1,353, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Ricoh Company going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Ricoh Company you should know about.

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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.