Here's What Analysts Are Forecasting For Visional, Inc. (TSE:4194) After Its First-Quarter Results

The first-quarter results for Visional, Inc. (TSE:4194) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of JP¥19b and statutory earnings per share of JP¥331. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Visional

After the latest results, the eight analysts covering Visional are now predicting revenues of JP¥76.6b in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 4.8% to JP¥358. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥76.3b and earnings per share (EPS) of JP¥351 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥9,672, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Visional, with the most bullish analyst valuing it at JP¥11,130 and the most bearish at JP¥8,200 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Visional's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% annually. Even after the forecast slowdown in growth, it seems obvious that Visional is also expected 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥9,672, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Visional. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Visional analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Visional Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.