Yokogawa Bridge Holdings Corp. (TSE:5911) Just Released Its Half-Year Earnings: Here's What Analysts Think

Investors in Yokogawa Bridge Holdings Corp. (TSE:5911) had a good week, as its shares rose 5.8% to close at JP¥2,772 following the release of its half-yearly results. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥73b, statutory earnings were in line with expectations, at JP¥291 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Yokogawa Bridge Holdings

Taking into account the latest results, the most recent consensus for Yokogawa Bridge Holdings from two analysts is for revenues of JP¥165.6b in 2025. If met, it would imply a credible 7.0% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 11% to JP¥260. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥167.1b and earnings per share (EPS) of JP¥293 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The consensus price target held steady at JP¥3,195, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Yokogawa Bridge Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Yokogawa Bridge Holdings is expected to grow much faster than its industry.

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. 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¥3,195, with the latest estimates not enough to have an impact on their price targets.

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 analyst estimates for Yokogawa Bridge Holdings going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Yokogawa Bridge Holdings 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.