ASICS Corporation Just Beat EPS By 54%: Here's What Analysts Think Will Happen Next
A week ago, ASICS Corporation (TSE:7936) came out with a strong set of half-yearly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 3.2% to hit JP¥534b. ASICS also reported a statutory profit of JP¥50.13, which was an impressive 54% 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ASICS after the latest results.
Taking into account the latest results, the consensus forecast from ASICS' 14 analysts is for revenues of JP¥1.02t in 2026. This reflects a solid 8.5% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥180, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥988.5b and earnings per share (EPS) of JP¥175 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
See our latest analysis for ASICS
Despite these upgrades,the analysts have not made any major changes to their price target of JP¥5,638, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values ASICS at JP¥6,500 per share, while the most bearish prices it at JP¥4,500. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ASICS shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of ASICS'historical trends, as the 18% annualised revenue growth to the end of 2026 is roughly in line with the 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.1% annually. So it's pretty clear that ASICS is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ASICS' earnings potential next year. 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¥5,638, 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 Simply Wall St, we have a full range of analyst estimates for ASICS going out to 2028, and you can see them free on our platform here..
You can also see our analysis of ASICS' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.