Stock Analysis

Here's What Analysts Are Forecasting For KOMEDA Holdings Co., Ltd. (TSE:3543) After Its Half-Year Results

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TSE:3543

It's been a good week for KOMEDA Holdings Co., Ltd. (TSE:3543) shareholders, because the company has just released its latest half-yearly results, and the shares gained 3.8% to JP¥2,819. Results overall were respectable, with statutory earnings of JP¥130 per share roughly in line with what the analysts had forecast. Revenues of JP¥23b came in 2.9% ahead of analyst predictions. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for KOMEDA Holdings

TSE:3543 Earnings and Revenue Growth October 11th 2024

After the latest results, the six analysts covering KOMEDA Holdings are now predicting revenues of JP¥46.4b in 2025. If met, this would reflect a modest 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.9% to JP¥141. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥46.2b and earnings per share (EPS) of JP¥140 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,120. 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. There are some variant perceptions on KOMEDA Holdings, with the most bullish analyst valuing it at JP¥3,300 and the most bearish at JP¥2,900 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that KOMEDA Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.2% growth on an annualised basis. This is compared to a historical growth rate of 9.2% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.6% annually. Factoring in the forecast slowdown in growth, it looks like KOMEDA Holdings is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥3,120, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple KOMEDA Holdings analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for KOMEDA Holdings that you should be aware of.

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

Discover if KOMEDA Holdings 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.