TOKYO KEIKI INC. Just Reported A Surprise Profit And Analysts Updated Their Estimates
Shareholders might have noticed that TOKYO KEIKI INC. (TSE:7721) filed its first-quarter result this time last week. The early response was not positive, with shares down 2.0% to JP¥7,300 in the past week. Although revenues of JP¥12b were in line with analyst expectations, TOKYO KEIKI surprised on the earnings front, with an unexpected (statutory) profit of JP¥1.90 per share a nice improvement on the losses that the analystsforecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from TOKYO KEIKI's five analysts is for revenues of JP¥69.6b in 2027. This would reflect a solid 12% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 24% to JP¥317. In the lead-up to this report, the analysts had been modelling revenues of JP¥69.1b and earnings per share (EPS) of JP¥312 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.
See our latest analysis for TOKYO KEIKI
The analysts reconfirmed their price target of JP¥8,620, showing that the business is executing well and in line with expectations. 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 TOKYO KEIKI, with the most bullish analyst valuing it at JP¥13,200 and the most bearish at JP¥5,400 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TOKYO KEIKI's past performance and to peers in the same industry. It's clear from the latest estimates that TOKYO KEIKI's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that TOKYO KEIKI is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still 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.
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 TOKYO KEIKI analysts - going out to 2029, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with TOKYO KEIKI , and understanding it should be part of your investment process.
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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.