Shiseido Company, Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Shiseido Company, Limited (TSE:4911) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 2.5% to hit JP¥242b. Shiseido Company also reported a statutory profit of JP¥36.74, which was an impressive 107% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the 18 analysts covering Shiseido Company are now predicting revenues of JP¥1.05t in 2027. If met, this would reflect a satisfactory 3.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 18% to JP¥140. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.05t and earnings per share (EPS) of JP¥136 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Shiseido Company

The consensus price target was unchanged at JP¥3,705, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Shiseido Company, with the most bullish analyst valuing it at JP¥4,530 and the most bearish at JP¥2,494 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. For example, we noticed that Shiseido Company's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.7% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 1.5% 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 4.0% per year. Although Shiseido Company's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Shiseido Company's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Shiseido Company going out to 2028, and you can see them free on our platform here.

You can also view our analysis of Shiseido Company's balance sheet, and whether we think Shiseido Company is carrying too much debt, for free on our platform here.

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