Results: SWCC Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

SWCC Corporation (TSE:5805) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.1% to hit JP¥61b. SWCC reported statutory earnings per share (EPS) JP¥141, which was a notable 15% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for SWCC

Taking into account the latest results, the current consensus from SWCC's five analysts is for revenues of JP¥251.7b in 2026. This would reflect a credible 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 52% to JP¥528. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥250.7b and earnings per share (EPS) of JP¥513 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥8,975, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic SWCC analyst has a price target of JP¥9,700 per share, while the most pessimistic values it at JP¥8,300. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of SWCC'shistorical trends, as the 6.2% annualised revenue growth to the end of 2026 is roughly in line with the 7.5% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.1% per year. So although SWCC is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SWCC's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥8,975, with the latest estimates not enough to have an impact on their price targets.

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

You still need to take note of risks, for example - SWCC has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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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.