Analyst Estimates: Here's What Brokers Think Of Ono Pharmaceutical Co., Ltd. (TSE:4528) After Its Yearly Report

Investors in Ono Pharmaceutical Co., Ltd. (TSE:4528) had a good week, as its shares rose 7.1% to close at JP¥2,479 following the release of its yearly results. Revenues of JP¥516b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥148, missing estimates by 2.1%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus, from the eleven analysts covering Ono Pharmaceutical, is for revenues of JP¥454.2b in 2027. This implies a considerable 12% reduction in Ono Pharmaceutical's revenue over the past 12 months. Statutory earnings per share are expected to shrink 2.8% to JP¥144 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥461.0b and earnings per share (EPS) of JP¥142 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Ono Pharmaceutical

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥2,221. 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. The most optimistic Ono Pharmaceutical analyst has a price target of JP¥2,950 per share, while the most pessimistic values it at JP¥1,750. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 12% by the end of 2027. This indicates a significant reduction from annual growth of 9.6% 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 4.0% per year. It's pretty clear that Ono Pharmaceutical'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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at JP¥2,221, 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. We have estimates - from multiple Ono Pharmaceutical analysts - going out to 2029, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Ono Pharmaceutical that you need to be mindful of.