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Toyo Suisan Kaisha, Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Last week, you might have seen that Toyo Suisan Kaisha, Ltd. (TSE:2875) released its half-yearly result to the market. The early response was not positive, with shares down 5.8% to JP¥10,405 in the past week. Toyo Suisan Kaisha missed revenue estimates by 2.1%, coming in atJP¥274b, although statutory earnings per share (EPS) of JP¥386 beat expectations, coming in 8.6% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Toyo Suisan Kaisha's twelve analysts is for revenues of JP¥569.7b in 2027. This would reflect a reasonable 2.7% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to drop 11% to JP¥692 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥570.8b and earnings per share (EPS) of JP¥721 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
See our latest analysis for Toyo Suisan Kaisha
It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥11,699, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Toyo Suisan Kaisha, with the most bullish analyst valuing it at JP¥14,300 and the most bearish at JP¥8,540 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. We would highlight that Toyo Suisan Kaisha's revenue growth is expected to slow, with the forecast 5.5% annualised growth rate until the end of 2027 being well below the historical 8.3% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.1% per year. Even after the forecast slowdown in growth, it seems obvious that Toyo Suisan Kaisha is also expected to grow faster than 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥11,699, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Toyo Suisan Kaisha going out to 2029, and you can see them free on our platform here..
You can also see our analysis of Toyo Suisan Kaisha's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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