Kotobuki Spirits Co., Ltd. (TSE:2222) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates
Kotobuki Spirits Co., Ltd. (TSE:2222) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Kotobuki Spirits reported JP¥19b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥17.69 beat expectations, being 4.9% higher than what the analysts expected. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Kotobuki Spirits from four analysts is for revenues of JP¥85.6b in 2027. If met, it would imply a satisfactory 6.4% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 11% to JP¥93.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥85.5b and earnings per share (EPS) of JP¥92.94 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.
See our latest analysis for Kotobuki Spirits
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,783. 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. There are some variant perceptions on Kotobuki Spirits, with the most bullish analyst valuing it at JP¥2,950 and the most bearish at JP¥2,700 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 Kotobuki Spirits' revenue growth is expected to slow, with the forecast 8.6% annualised growth rate until the end of 2027 being well below the historical 21% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.1% annually. Even after the forecast slowdown in growth, it seems obvious that Kotobuki Spirits is also expected 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. The consensus price target held steady at JP¥2,783, with the latest estimates not enough to have an impact on their price targets.
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 Kotobuki Spirits analysts - going out to 2029, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.