Analyst Estimates: Here's What Brokers Think Of SWCC Corporation (TSE:5805) After Its Yearly Report

The full-year results for SWCC Corporation (TSE:5805) were released last week, making it a good time to revisit its performance. SWCC reported in line with analyst predictions, delivering revenues of JP¥238b and statutory earnings per share of JP¥386, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 3 warning signs about SWCC. View them for free.

After the latest results, the five analysts covering SWCC are now predicting revenues of JP¥263.1b in 2026. If met, this would reflect a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 38% to JP¥530. Before this earnings report, the analysts had been forecasting revenues of JP¥260.0b and earnings per share (EPS) of JP¥537 in 2026. 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.

See our latest analysis for SWCC

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥8,250. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values SWCC at JP¥9,500 per share, while the most bearish prices it at JP¥7,200. This is a very narrow spread of estimates, implying either that SWCC is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SWCC's past performance and to peers in the same industry. The analysts are definitely expecting SWCC's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SWCC is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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.

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 SWCC analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for SWCC (1 doesn't sit too well with us!) that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.