Stock Analysis

BELLSYSTEM24 Holdings, Inc. (TSE:6183) Just Released Its First-Quarter Earnings: Here's What Analysts Think

TSE:6183
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BELLSYSTEM24 Holdings, Inc. (TSE:6183) shareholders are probably feeling a little disappointed, since its shares fell 5.0% to JP¥1,491 in the week after its latest quarterly results. Revenues came in 3.1% below expectations, at JP¥37b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥103 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for BELLSYSTEM24 Holdings

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TSE:6183 Earnings and Revenue Growth July 13th 2024

Taking into account the latest results, the consensus forecast from BELLSYSTEM24 Holdings' five analysts is for revenues of JP¥155.1b in 2025. This reflects a modest 6.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 33% to JP¥114. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥155.2b and earnings per share (EPS) of JP¥116 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,878. 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. Currently, the most bullish analyst values BELLSYSTEM24 Holdings at JP¥2,260 per share, while the most bearish prices it at JP¥1,600. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting BELLSYSTEM24 Holdings' growth to accelerate, with the forecast 8.2% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BELLSYSTEM24 Holdings is expected to grow much faster than its 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¥1,878, 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 BELLSYSTEM24 Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple BELLSYSTEM24 Holdings analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with BELLSYSTEM24 Holdings .

Valuation is complex, but we're helping make it simple.

Find out whether BELLSYSTEM24 Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.

Valuation is complex, but we're helping make it simple.

Find out whether BELLSYSTEM24 Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com