Toyo Suisan Kaisha, Ltd. Just Beat EPS By 19%: Here's What Analysts Think Will Happen Next
There's been a notable change in appetite for Toyo Suisan Kaisha, Ltd. (TSE:2875) shares in the week since its quarterly report, with the stock down 11% to JP¥10,015. It looks like a credible result overall - although revenues of JP¥136b were in line with what the analysts predicted, Toyo Suisan Kaisha surprised by delivering a statutory profit of JP¥188 per share, a notable 19% above expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Toyo Suisan Kaisha's twelve analysts is for revenues of JP¥570.6b in 2027. This reflects an okay 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 4.7% to JP¥719 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥570.5b and earnings per share (EPS) of JP¥706 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.
View our latest analysis for Toyo Suisan Kaisha
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥11,662. 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. The most optimistic Toyo Suisan Kaisha analyst has a price target of JP¥14,300 per share, while the most pessimistic values it at JP¥8,540. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. It's pretty clear that there is an expectation that Toyo Suisan Kaisha's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 5.9% growth on an annualised basis. This is compared to a historical growth rate of 8.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.1% annually. So it's pretty clear that, while Toyo Suisan Kaisha's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Toyo Suisan Kaisha analysts - going out to 2029, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.