Ajinomoto Co., Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Ajinomoto Co., Inc. (TSE:2802) just released its quarterly report and things are looking bullish. Ajinomoto beat earnings, with revenues hitting JP¥412b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 11%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ajinomoto after the latest results.
After the latest results, the 14 analysts covering Ajinomoto are now predicting revenues of JP¥1.72t in 2027. If met, this would reflect a modest 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 2.6% to JP¥142 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥1.72t and earnings per share (EPS) of JP¥142 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Ajinomoto
The analysts reconfirmed their price target of JP¥5,954, showing that the business is executing well and in line with expectations. 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. The most optimistic Ajinomoto analyst has a price target of JP¥7,200 per share, while the most pessimistic values it at JP¥3,650. 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. We can infer from the latest estimates that forecasts expect a continuation of Ajinomoto'shistorical trends, as the 7.6% annualised revenue growth to the end of 2027 is roughly in line with the 7.6% annual growth 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 revenues grow 3.9% per year. So although Ajinomoto is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
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. The consensus price target held steady at JP¥5,954, 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 Ajinomoto 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 Ajinomoto that you should be aware of.
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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.