Analysts Have Made A Financial Statement On Kobe Bussan Co., Ltd.'s (TSE:3038) Half-Year Report

Kobe Bussan Co., Ltd. (TSE:3038) last week reported its latest half-yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of JP¥248b were in line with what the analysts predicted, Kobe Bussan surprised by delivering a statutory profit of JP¥30.90 per share, modestly greater than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Kobe Bussan

After the latest results, the eleven analysts covering Kobe Bussan are now predicting revenues of JP¥505.6b in 2024. If met, this would reflect a satisfactory 3.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 2.1% to JP¥110. Before this earnings report, the analysts had been forecasting revenues of JP¥505.4b and earnings per share (EPS) of JP¥110 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥4,055. 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 Kobe Bussan at JP¥4,300 per share, while the most bearish prices it at JP¥3,500. This is a very narrow spread of estimates, implying either that Kobe Bussan is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Kobe Bussan's revenue growth is expected to slow, with the forecast 7.5% annualised growth rate until the end of 2024 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.4% annually. So it's pretty clear that, while Kobe Bussan's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. 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 no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Kobe Bussan going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Kobe Bussan 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.

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