Stock Analysis

Analyst Estimates: Here's What Brokers Think Of Goldwin Inc. (TSE:8111) After Its First-Quarter Report

TSE:8111
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Shareholders might have noticed that Goldwin Inc. (TSE:8111) filed its first-quarter result this time last week. The early response was not positive, with shares down 9.4% to JP¥8,426 in the past week. It was a credible result overall, with revenues of JP¥25b and statutory earnings per share of JP¥539 both in line with analyst estimates, showing that Goldwin is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Goldwin

earnings-and-revenue-growth
TSE:8111 Earnings and Revenue Growth August 8th 2024

Taking into account the latest results, the consensus forecast from Goldwin's seven analysts is for revenues of JP¥136.2b in 2025. This reflects an okay 6.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 8.8% to JP¥498 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥136.5b and earnings per share (EPS) of JP¥498 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of JP¥12,429, showing that the business is executing well and in line with expectations. 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 Goldwin at JP¥14,000 per share, while the most bearish prices it at JP¥9,900. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 8.2% growth on an annualised basis. That is in line with its 7.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.0% annually. So it's pretty clear that Goldwin is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥12,429, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Goldwin going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Goldwin 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.