Shareholders will be ecstatic, with their stake up 22% over the past week following ASICS Corporation's (TSE:7936) latest half-year results. Revenues were JP¥403b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥30.74 were also better than expected, beating analyst predictions by 18%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ASICS after the latest results.
Following the latest results, ASICS' 13 analysts are now forecasting revenues of JP¥786.8b in 2025. This would be a satisfactory 6.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 16% to JP¥122. In the lead-up to this report, the analysts had been modelling revenues of JP¥779.5b and earnings per share (EPS) of JP¥117 in 2025. So the consensus seems to have become somewhat more optimistic on ASICS' earnings potential following these results.
See our latest analysis for ASICS
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.7% to JP¥4,260. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values ASICS at JP¥5,200 per share, while the most bearish prices it at JP¥3,300. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that ASICS' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% annually. Even after the forecast slowdown in growth, it seems obvious that ASICS is also 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 ASICS' 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for ASICS going out to 2027, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for ASICS 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.