The Genky DrugStores Co., Ltd. (TSE:9267) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

Shareholders of Genky DrugStores Co., Ltd. (TSE:9267) will be pleased this week, given that the stock price is up 11% to JP¥3,685 following its latest quarterly results. Results were roughly in line with estimates, with revenues of JP¥49b and statutory earnings per share of JP¥208. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Genky DrugStores. Read for free now.

Taking into account the latest results, the consensus forecast from Genky DrugStores' two analysts is for revenues of JP¥223.6b in 2026. This reflects a decent 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 16% to JP¥257. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥223.6b and earnings per share (EPS) of JP¥257 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Genky DrugStores

There were no changes to revenue or earnings estimates or the price target of JP¥4,400, suggesting that the company has met expectations in its recent result.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Genky DrugStores' rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 9.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Genky DrugStores is expected to grow much 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. 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. The consensus price target held steady at JP¥4,400, with the latest estimates not enough to have an impact on their price targets.

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

It is also worth noting that we have found 1 warning sign for Genky DrugStores that you need to take into consideration.

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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.