Analysts Have Made A Financial Statement On Welcia Holdings Co., Ltd.'s (TSE:3141) Annual Report

Welcia Holdings Co., Ltd. (TSE:3141) shareholders are probably feeling a little disappointed, since its shares fell 4.5% to JP¥2,368 in the week after its latest full-year results. Welcia Holdings reported in line with analyst predictions, delivering revenues of JP¥1.2t and statutory earnings per share of JP¥128, suggesting the business is executing well and in line with its plan. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Welcia Holdings

Following the latest results, Welcia Holdings' ten analysts are now forecasting revenues of JP¥1.28t in 2025. This would be a reasonable 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.7% to JP¥133. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.28t and earnings per share (EPS) of JP¥137 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at JP¥2,827, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Welcia Holdings at JP¥3,300 per share, while the most bearish prices it at JP¥2,590. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Welcia Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 9.0% 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 2.5% annually. So it's pretty clear that, while Welcia Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Welcia Holdings. 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 Welcia Holdings going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Welcia Holdings .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.