Ricoh Company, Ltd. Just Missed EPS By 9.5%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Ricoh Company, Ltd. (TSE:7752) filed its quarterly result this time last week. The early response was not positive, with shares down 8.0% to JP¥1,229 in the past week. Ricoh Company beat revenue expectations by 2.8%, at JP¥574b. Statutory earnings per share (EPS) came in at JP¥13.03, some 9.5% short of analyst estimates. 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 the latest results, Ricoh Company's eight analysts are now forecasting revenues of JP¥2.44t in 2025. This would be a satisfactory 2.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 13% to JP¥82.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.45t and earnings per share (EPS) of JP¥82.90 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of JP¥1,369, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Ricoh Company at JP¥1,700 per share, while the most bearish prices it at JP¥1,100. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Ricoh Company's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 4.4% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.7% annually. So it's pretty clear that, while Ricoh Company's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥1,369, 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 Ricoh Company. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Ricoh Company analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Ricoh Company 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.