Tokyo Ohka Kogyo Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
It's been a pretty great week for Tokyo Ohka Kogyo Co., Ltd. (TSE:4186) shareholders, with its shares surging 13% to JP¥7,722 in the week since its latest quarterly results. Revenues were JP¥78b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at JP¥97.78, an impressive 27% ahead of estimates. 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.
Following the latest results, Tokyo Ohka Kogyo's 13 analysts are now forecasting revenues of JP¥338.7b in 2027. This would be a sizeable 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 22% to JP¥441. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥336.9b and earnings per share (EPS) of JP¥439 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.
Check out our latest analysis for Tokyo Ohka Kogyo
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥10,808. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Tokyo Ohka Kogyo analyst has a price target of JP¥14,000 per share, while the most pessimistic values it at JP¥6,000. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. The analysts are definitely expecting Tokyo Ohka Kogyo's growth to accelerate, with the forecast 16% annualised growth to the end of 2027 ranking favourably alongside historical growth of 13% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tokyo Ohka Kogyo 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. 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 Ohka Kogyo analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Tokyo Ohka Kogyo you should be aware of.
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