Toray Industries, Inc. (TSE:3402) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.5% to hit JP¥679b. Toray Industries also reported a statutory profit of JP¥21.47, which was an impressive 30% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Toray Industries' twelve analysts are now forecasting revenues of JP¥2.78t in 2027. This would be an okay 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.6% to JP¥66.58. Before this earnings report, the analysts had been forecasting revenues of JP¥2.78t and earnings per share (EPS) of JP¥65.50 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 Toray Industries
It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,364. 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. There are some variant perceptions on Toray Industries, with the most bullish analyst valuing it at JP¥1,600 and the most bearish at JP¥970 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Toray Industries' past performance and to peers in the same industry. The analysts are definitely expecting Toray Industries' growth to accelerate, with the forecast 5.7% annualised growth to the end of 2027 ranking favourably alongside historical growth of 4.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.0% per year. Toray Industries is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Toray Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Toray Industries analysts - going out to 2029, and you can see them free on our platform here.
It might also be worth considering whether Toray Industries' debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.