Earnings Miss: Takeuchi Mfg. Co., Ltd. Missed EPS By 16% And Analysts Are Revising Their Forecasts

Simply Wall St · 6d ago

It's shaping up to be a tough period for Takeuchi Mfg. Co., Ltd. (TSE:6432), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at JP¥213b, statutory earnings missed forecasts by 16%, coming in at just JP¥552 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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TSE:6432 Earnings and Revenue Growth April 14th 2025

Taking into account the latest results, the six analysts covering Takeuchi Mfg provided consensus estimates of JP¥195.6b revenue in 2026, which would reflect a considerable 8.3% decline over the past 12 months. Statutory earnings per share are expected to sink 17% to JP¥466 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥191.2b and earnings per share (EPS) of JP¥522 in 2026. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

Check out our latest analysis for Takeuchi Mfg

The consensus price target fell 6.2% to JP¥4,692, suggesting that the analysts are primarily focused on earnings as the driver of value for this business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Takeuchi Mfg at JP¥6,460 per share, while the most bearish prices it at JP¥3,300. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 8.3% annualised decline to the end of 2026. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Takeuchi Mfg is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Takeuchi Mfg. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Takeuchi Mfg going out to 2028, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Takeuchi Mfg you should know about.