Daiwa House Industry Co., Ltd. Just Recorded A 14% EPS Beat: Here's What Analysts Are Forecasting Next

Daiwa House Industry Co., Ltd. (TSE:1925) just released its latest half-yearly results and things are looking bullish. Daiwa House Industry beat earnings, with revenues hitting JP¥2.9t, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Daiwa House Industry's nine analysts is for revenues of JP¥5.99t in 2027. This would reflect a reasonable 2.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to nosedive 23% to JP¥226 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥5.97t and earnings per share (EPS) of JP¥223 in 2027. 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.

See our latest analysis for Daiwa House Industry

There were no changes to revenue or earnings estimates or the price target of JP¥2,518, 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 Daiwa House Industry at JP¥2,700 per share, while the most bearish prices it at JP¥2,300. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Daiwa House Industry's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 4.6% growth on an annualised basis. That is in line with its 5.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.7% annually. It's clear that while Daiwa House Industry's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥2,518, 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. We have estimates - from multiple Daiwa House Industry analysts - going out to 2029, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Daiwa House Industry (1 can't be ignored) you should be aware of.

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