Earnings Miss: Canon Marketing Japan Inc. Missed EPS By 13% And Analysts Are Revising Their Forecasts

As you might know, Canon Marketing Japan Inc. (TSE:8060) recently reported its first-quarter numbers. It was not a great result overall. Although revenues beat expectations, hitting JP¥157b, statutory earnings missed analyst forecasts by 13%, coming in at just JP¥73.44 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Canon Marketing Japan

Taking into account the latest results, the current consensus from Canon Marketing Japan's dual analysts is for revenues of JP¥651.7b in 2024. This would reflect a credible 6.5% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 11% to JP¥306. In the lead-up to this report, the analysts had been modelling revenues of JP¥633.4b and earnings per share (EPS) of JP¥302 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of JP¥5,067, implying that the uplift in revenue is not expected to greatly contribute to Canon Marketing Japan's valuation in the near term.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Canon Marketing Japan's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Canon Marketing Japan is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.8% annualised growth until the end of 2024. If achieved, this would be a much better result than the 0.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.6% per year. So it looks like Canon Marketing Japan is expected to grow faster than its competitors, at least for a while.

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, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at JP¥5,067, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Canon Marketing Japan .

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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.