Stock Analysis

KOMEDA Holdings Co., Ltd. (TSE:3543) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

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TSE:3543

Shareholders might have noticed that KOMEDA Holdings Co., Ltd. (TSE:3543) filed its quarterly result this time last week. The early response was not positive, with shares down 3.8% to JP¥2,617 in the past week. KOMEDA Holdings reported in line with analyst predictions, delivering revenues of JP¥11b and statutory earnings per share of JP¥130, suggesting the business is executing well and in line with its plan. 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.

View our latest analysis for KOMEDA Holdings

TSE:3543 Earnings and Revenue Growth July 12th 2024

Taking into account the latest results, the current consensus from KOMEDA Holdings' six analysts is for revenues of JP¥46.1b in 2025. This would reflect an okay 5.2% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 8.5% to JP¥140. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥46.4b and earnings per share (EPS) of JP¥142 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥3,120. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic KOMEDA Holdings analyst has a price target of JP¥3,300 per share, while the most pessimistic values it at JP¥2,900. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting KOMEDA Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the KOMEDA Holdings' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of KOMEDA Holdings'historical trends, as the 7.0% annualised revenue growth to the end of 2025 is roughly in line with the 8.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.7% annually. It's clear that while KOMEDA Holdings' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for KOMEDA Holdings going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - KOMEDA Holdings has 1 warning sign we think you should be aware of.

Valuation is complex, but we're helping make it simple.

Find out whether KOMEDA Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.

Valuation is complex, but we're helping make it simple.

Find out whether KOMEDA Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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