Infomart Corporation (TSE:2492) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a sad week for Infomart Corporation (TSE:2492), who've watched their investment drop 12% to JP¥324 in the week since the company reported its quarterly result. Revenues came in 3.5% below expectations, at JP¥3.5b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥1.31 being roughly in line with analyst estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Infomart

Taking into account the latest results, the consensus forecast from Infomart's four analysts is for revenues of JP¥15.8b in 2024. This reflects a decent 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 131% to JP¥4.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥15.9b and earnings per share (EPS) of JP¥4.07 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of JP¥447, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Infomart, with the most bullish analyst valuing it at JP¥470 and the most bearish at JP¥420 per share. This is a very narrow spread of estimates, implying either that Infomart is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Infomart's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Infomart to grow faster than the wider 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. The consensus price target held steady at JP¥447, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Infomart going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Infomart that 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.