Broker Revenue Forecasts For JAPAN POST BANK Co., Ltd. (TSE:7182) Are Surging Higher

JAPAN POST BANK Co., Ltd. (TSE:7182) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that JAPAN POST BANK will make substantially more sales than they'd previously expected.

Following the upgrade, the consensus from nine analysts covering JAPAN POST BANK is for revenues of JP¥1.2t in 2025, implying a painful 27% decline in sales compared to the last 12 months. Per-share earnings are expected to increase 6.5% to JP¥105. Before this latest update, the analysts had been forecasting revenues of JP¥974b and earnings per share (EPS) of JP¥102 in 2025. The most recent forecasts are noticeably more optimistic, with a very substantial lift in revenue estimates and a lift to earnings per share as well.

Check out our latest analysis for JAPAN POST BANK

Despite these upgrades, the analysts have not made any major changes to their price target of JP¥1,667, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the JAPAN POST BANK's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 35% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 2.3% 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 0.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - JAPAN POST BANK is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at JAPAN POST BANK.

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 JAPAN POST BANK analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.