Earnings Update: Daiseki Co.,Ltd. (TSE:9793) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

Last week, you might have seen that Daiseki Co.,Ltd. (TSE:9793) released its full-year result to the market. The early response was not positive, with shares down 2.7% to JP¥3,560 in the past week. Results were roughly in line with estimates, with revenues of JP¥67b and statutory earnings per share of JP¥193. 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.

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Taking into account the latest results, the consensus forecast from DaisekiLtd's seven analysts is for revenues of JP¥71.7b in 2026. This reflects a reasonable 6.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 15% to JP¥222. Before this earnings report, the analysts had been forecasting revenues of JP¥72.1b and earnings per share (EPS) of JP¥215 in 2026. So the consensus seems to have become somewhat more optimistic on DaisekiLtd's earnings potential following these results.

See our latest analysis for DaisekiLtd

The consensus price target was unchanged at JP¥4,772, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on DaisekiLtd, with the most bullish analyst valuing it at JP¥6,000 and the most bearish at JP¥4,100 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of DaisekiLtd'shistorical trends, as the 6.5% annualised revenue growth to the end of 2026 is roughly in line with the 6.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.1% annually. So it's pretty clear that DaisekiLtd 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 DaisekiLtd's earnings potential next year. 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 in mind, we wouldn't be too quick to come to a conclusion on DaisekiLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple DaisekiLtd analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of DaisekiLtd's 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.