JP¥3,567 - That's What Analysts Think ASICS Corporation (TSE:7936) Is Worth After These Results

It's been a pretty great week for ASICS Corporation (TSE:7936) shareholders, with its shares surging 15% to JP¥3,803 in the week since its latest yearly results. It was a credible result overall, with revenues of JP¥679b and statutory earnings per share of JP¥88.30 both in line with analyst estimates, showing that ASICS is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for ASICS

Taking into account the latest results, the current consensus from ASICS' ten analysts is for revenues of JP¥753.6b in 2025. This would reflect a notable 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 25% to JP¥111. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥739.0b and earnings per share (EPS) of JP¥107 in 2025. So the consensus seems to have become somewhat more optimistic on ASICS' earnings potential following these results.

The consensus price target rose 6.5% to JP¥3,567, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on ASICS, with the most bullish analyst valuing it at JP¥4,400 and the most bearish at JP¥2,500 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ASICS shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ASICS' past performance and to peers in the same industry. We would highlight that ASICS' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.2% per year. So it's pretty clear that, while ASICS' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ASICS following these results. 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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

Before you take the next step you should know about the 1 warning sign for ASICS that we have uncovered.

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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.