Ricoh Company, Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
A week ago, Ricoh Company, Ltd. (TSE:7752) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 2.6% to hit JP¥630b. Ricoh Company also reported a statutory profit of JP¥65.30, which was an impressive 258% above what the analysts had forecast. 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.
Following last week's earnings report, Ricoh Company's ten analysts are forecasting 2027 revenues to be JP¥2.63t, approximately in line with the last 12 months. Statutory earnings per share are forecast to plummet 20% to JP¥118 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥2.63t and earnings per share (EPS) of JP¥118 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.
Check out our latest analysis for Ricoh Company
There were no changes to revenue or earnings estimates or the price target of JP¥1,448, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Ricoh Company at JP¥1,700 per share, while the most bearish prices it at JP¥1,100. 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 would highlight that revenue is expected to reverse, with a forecast 1.3% annualised decline to the end of 2027. That is a notable change from historical growth of 9.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.2% annually for the foreseeable future. It's pretty clear that Ricoh Company's revenues are expected to perform substantially worse 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Ricoh Company's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥1,448, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Ricoh Company. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Ricoh Company analysts - going out to 2029, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Ricoh Company (1 is a bit unpleasant) you should be aware of.
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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.