ASICS Corporation Just Recorded A 71% EPS Beat: Here's What Analysts Are Forecasting Next

A week ago, ASICS Corporation (TSE:7936) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of JP¥174b, some 5.5% above estimates, and statutory earnings per share (EPS) coming in at JP¥147, 71% ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for ASICS

After the latest results, the eight analysts covering ASICS are now predicting revenues of JP¥615.3b in 2024. If met, this would reflect a reasonable 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to shrink 9.5% to JP¥229 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥608.7b and earnings per share (EPS) of JP¥216 in 2024. So the consensus seems to have become somewhat more optimistic on ASICS' earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.4% to JP¥7,831. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values ASICS at JP¥8,800 per share, while the most bearish prices it at JP¥7,200. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ASICS is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that ASICS' revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. Compare this to the 62 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it looks like ASICS is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 2026, and you can see them free on our platform here..

Even so, be aware that ASICS is showing 1 warning sign in our investment analysis , 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.