Here's What Analysts Are Forecasting For SWCC Corporation (TSE:5805) After Its Half-Yearly Results

Shareholders will be ecstatic, with their stake up 28% over the past week following SWCC Corporation's (TSE:5805) latest half-yearly results. It was a workmanlike result, with revenues of JP¥117b coming in 3.9% ahead of expectations, and statutory earnings per share of JP¥297, in line with analyst appraisals. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for SWCC

Taking into account the latest results, SWCC's four analysts currently expect revenues in 2025 to be JP¥235.9b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 21% to JP¥375. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥234.9b and earnings per share (EPS) of JP¥401 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥6,525, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values SWCC at JP¥7,000 per share, while the most bearish prices it at JP¥5,800. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that SWCC's revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2025 being well below the historical 6.9% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than SWCC.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that SWCC's revenue is expected to perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on SWCC. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for SWCC going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for SWCC that you need to take into consideration.

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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.