Earnings Beat: Greens Co.,Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Greens Co.,Ltd. (TSE:6547) just released its interim report and things are looking bullish. The company beat forecasts, with revenue of JP¥25b, some 5.3% above estimates, and statutory earnings per share (EPS) coming in at JP¥160, 61% ahead of expectations. 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.

Check out our latest analysis for GreensLtd

Following the latest results, GreensLtd's twin analysts are now forecasting revenues of JP¥48.0b in 2025. This would be an okay 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plummet 25% to JP¥283 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥47.2b and earnings per share (EPS) of JP¥272 in 2025. So the consensus seems to have become somewhat more optimistic on GreensLtd's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 23% to JP¥3,000.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that GreensLtd's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.6% annually. Even after the forecast slowdown in growth, it seems obvious that GreensLtd is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around GreensLtd's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for GreensLtd going out as far as 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for GreensLtd that we have uncovered.

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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.