JAPAN POST BANK Co., Ltd. (TSE:7182) Analysts Just Slashed This Year's Revenue Estimates By 11%

The analysts covering JAPAN POST BANK Co., Ltd. (TSE:7182) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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Following the downgrade, the consensus from six analysts covering JAPAN POST BANK is for revenues of JP¥1.2t in 2026, implying a painful 31% decline in sales compared to the last 12 months. Per-share earnings are expected to rise 8.6% to JP¥128. Previously, the analysts had been modelling revenues of JP¥1.3t and earnings per share (EPS) of JP¥132 in 2026. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a minor downgrade to earnings per share numbers as well.

View our latest analysis for JAPAN POST BANK

Despite the cuts to forecast earnings, there was no real change to the JP¥1,792 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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 sales are expected to slow, with a forecast annualised revenue decline of 40% by the end of 2026. This indicates a significant reduction from annual growth of 2.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.3% annually for the foreseeable future. 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 issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for JAPAN POST BANK. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on JAPAN POST BANK after today.

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 2028, 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 downgrading 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.