Stock Analysis

Analysts Have Made A Financial Statement On BRONCO BILLY Co.,LTD.'s (TSE:3091) Annual Report

TSE:3091
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BRONCO BILLY Co.,LTD. (TSE:3091) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. BRONCO BILLYLTD reported JP¥27b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥115 beat expectations, being 4.0% higher than what the analysts expected. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for BRONCO BILLYLTD

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TSE:3091 Earnings and Revenue Growth January 23rd 2025

Following the latest results, BRONCO BILLYLTD's dual analysts are now forecasting revenues of JP¥29.7b in 2025. This would be a decent 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 17% to JP¥134. Before this earnings report, the analysts had been forecasting revenues of JP¥28.9b and earnings per share (EPS) of JP¥120 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice gain to earnings per share in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of JP¥4,035, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of BRONCO BILLYLTD'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 14% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.0% annually. So it's pretty clear that BRONCO BILLYLTD is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards BRONCO BILLYLTD following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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 in mind, we wouldn't be too quick to come to a conclusion on BRONCO BILLYLTD. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for BRONCO BILLYLTD that you need to be mindful of.

Valuation is complex, but we're here to simplify it.

Discover if BRONCO BILLYLTD might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.