Tokyu Corporation Just Recorded A 10% EPS Beat: Here's What Analysts Are Forecasting Next

Tokyu Corporation (TSE:9005) just released its third-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.4% to hit JP¥261b. Tokyu reported statutory earnings per share (EPS) JP¥32.46, which was a notable 10% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Tokyu

Taking into account the latest results, Tokyu's five analysts currently expect revenues in 2026 to be JP¥1.08t, approximately in line with the last 12 months. Statutory earnings per share are forecast to descend 14% to JP¥122 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.05t and earnings per share (EPS) of JP¥123 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of JP¥2,000, implying that the uplift in revenue is not expected to greatly contribute to Tokyu's valuation in the near 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. Currently, the most bullish analyst values Tokyu at JP¥2,400 per share, while the most bearish prices it at JP¥1,800. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that Tokyu's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 0.9% to the end of 2026. This tops off a historical decline of 0.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 2.5% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Tokyu to suffer worse than the wider industry.

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. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Tokyu. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tokyu analysts - 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 Tokyu 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.