Takashimaya Company, Limited Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Simply Wall St · 07/02 23:09

It's been a good week for Takashimaya Company, Limited (TSE:8233) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.7% to JP¥1,109. Revenues came in 6.2% below expectations, at JP¥112b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥126 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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:8233 Earnings and Revenue Growth July 2nd 2025

Taking into account the latest results, the most recent consensus for Takashimaya Company from four analysts is for revenues of JP¥492.1b in 2026. If met, it would imply a major 22% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 23% to JP¥137. Before this earnings report, the analysts had been forecasting revenues of JP¥505.8b and earnings per share (EPS) of JP¥130 in 2026. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

Check out our latest analysis for Takashimaya Company

There's been no real change to the average price target of JP¥1,248, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Takashimaya Company at JP¥1,390 per share, while the most bearish prices it at JP¥1,100. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Takashimaya Company is forecast to grow faster in the future than it has in the past, with revenues expected to display 30% annualised growth until the end of 2026. If achieved, this would be a much better result than the 14% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.2% per year. So it looks like Takashimaya Company is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Takashimaya Company's earnings potential next year. They also downgraded Takashimaya Company's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at JP¥1,248, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Takashimaya Company going out to 2028, and you can see them free on our platform here..

You can also see whether Takashimaya Company is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.