Results: Ricoh Company, Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Ricoh Company, Ltd. (TSE:7752) just kicked off its latest interim results with some very strong numbers. The company beat forecasts, with revenue of JP¥1.2t, some 3.5% above estimates, and statutory earnings per share (EPS) coming in at JP¥15.61, 45% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Ricoh Company

Following last week's earnings report, Ricoh Company's nine analysts are forecasting 2025 revenues to be JP¥2.48t, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 7.1% to JP¥68.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.45t and earnings per share (EPS) of JP¥74.02 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Despite cutting their earnings forecasts,the analysts have lifted their price target 6.4% to JP¥1,465, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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 Ricoh Company, with the most bullish analyst valuing it at JP¥1,900 and the most bearish at JP¥1,100 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Ricoh Company's revenue growth is expected to slow, with the forecast 3.2% annualised growth rate until the end of 2025 being well below the historical 5.6% p.a. growth over the last five years. Compare this to the 25 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.6% per year. Factoring in the forecast slowdown in growth, it looks like Ricoh Company is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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

Plus, you should also learn about the 2 warning signs we've spotted with Ricoh Company .

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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.