Kobe Bussan Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Kobe Bussan Co., Ltd. (TSE:3038) had a good week, as its shares rose 2.5% to close at JP¥4,249 following the release of its third-quarter results. It looks like a credible result overall - although revenues of JP¥139b were what the analysts expected, Kobe Bussan surprised by delivering a (statutory) profit of JP¥53.89 per share, an impressive 67% above what was forecast. 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.

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After the latest results, the eight analysts covering Kobe Bussan are now predicting revenues of JP¥589.5b in 2026. If met, this would reflect a solid 8.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 7.3% to JP¥137 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥591.5b and earnings per share (EPS) of JP¥138 in 2026. 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.

View our latest analysis for Kobe Bussan

There were no changes to revenue or earnings estimates or the price target of JP¥4,296, suggesting that the company has met expectations in its recent result. 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 Kobe Bussan, with the most bullish analyst valuing it at JP¥5,400 and the most bearish at JP¥3,800 per share. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Kobe Bussan's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.9% growth on an annualised basis. This is compared to a historical growth rate of 11% 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 3.3% 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. Happily, there were no major changes to revenue forecasts, with the business still 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 in mind, we wouldn't be too quick to come to a conclusion on Kobe Bussan. Long-term earnings power is much more important than next year's profits. We have forecasts for Kobe Bussan going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.