JGC Holdings Corporation (TSE:1963) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, JGC Holdings Corporation (TSE:1963) just kicked off its latest full-year results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of JP¥858b leading estimates by 3.2%. Statutory losses were smaller than the analystsexpected, coming in at JP¥1.65 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 1 warning sign about JGC Holdings. View them for free.

Taking into account the latest results, the six analysts covering JGC Holdings provided consensus estimates of JP¥777.4b revenue in 2026, which would reflect a definite 9.4% decline over the past 12 months. JGC Holdings is also expected to turn profitable, with statutory earnings of JP¥102 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥810.9b and earnings per share (EPS) of JP¥103 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

View our latest analysis for JGC Holdings

The consensus has reconfirmed its price target of JP¥1,257, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on JGC Holdings' market value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values JGC Holdings at JP¥1,550 per share, while the most bearish prices it at JP¥1,000. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 9.4% by the end of 2026. This indicates a significant reduction from annual growth of 17% 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 2.1% per year. It's pretty clear that JGC Holdings' 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 negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings are more important to the intrinsic value of the business. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for JGC Holdings going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - JGC Holdings has 1 warning sign we think you should be aware of.

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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.