JP¥3,895: That's What Analysts Think BRONCO BILLY Co.,LTD. (TSE:3091) Is Worth After Its Latest Results

BRONCO BILLY Co.,LTD. (TSE:3091) shareholders are probably feeling a little disappointed, since its shares fell 7.1% to JP¥3,575 in the week after its latest first-quarter results. It was a credible result overall, with revenues of JP¥7.3b and statutory earnings per share of JP¥115 both in line with analyst estimates, showing that BRONCO BILLYLTD is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from BRONCO BILLYLTD's dual analysts is for revenues of JP¥29.7b in 2025. This reflects a decent 8.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 16% to JP¥122. In the lead-up to this report, the analysts had been modelling revenues of JP¥29.8b and earnings per share (EPS) of JP¥135 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for BRONCO BILLYLTD

The average price target fell 6.0% to JP¥3,895, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. We can infer from the latest estimates that forecasts expect a continuation of BRONCO BILLYLTD'shistorical trends, as the 11% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.7% per year. So although BRONCO BILLYLTD is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for BRONCO BILLYLTD. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of BRONCO BILLYLTD's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for BRONCO BILLYLTD 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.