Disco reported its half-year results. The market reaction was unfavorable, and analysts cut next year's target price to ¥77,205; revenue exceeded market expectations, but EPS fell short.
Disco, listed on the TSE under 6146, reported its half-year results last week. Its share price fell 8.5% over the past week to ¥49,290.
Revenue was ¥257 billion, approximately 2.1% above market expectations, while statutory earnings per share (EPS) of ¥741 were approximately 4.7% below analyst estimates.
The consensus forecast from 21 analysts calls for 2027 revenue of ¥566.2 billion and EPS of ¥1,731, compared with pre-earnings expectations of ¥565 billion in revenue and EPS of ¥1,759.
The consensus target price fell 5.4% to ¥77,205. Valuations varied widely, with the most optimistic view at ¥105,000 and the most conservative at ¥54,900, indicating a broad forecast range.
The growth outlook is also seen as exceeding the industry's overall growth outlook, with annual growth through the end of 2027 estimated at 29%, although views on the outlook remain divided in light of the latest results.