Greens Co.,Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

The quarterly results for Greens Co.,Ltd. (TSE:6547) were released last week, making it a good time to revisit its performance. GreensLtd beat expectations by 6.4% with revenues of JP¥11b. It also surprised on the earnings front, with an unexpected statutory profit of JP¥18.23 per share a nice improvement on the losses that the analysts forecast. 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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Following the latest results, GreensLtd's two analysts are now forecasting revenues of JP¥53.0b in 2026. This would be a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decline 10% to JP¥295 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥53.2b and earnings per share (EPS) of JP¥299 in 2026. 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.

Check out our latest analysis for GreensLtd

The consensus price target rose 9.3% to JP¥3,280despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of GreensLtd's earnings by assigning a price premium.

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 GreensLtd's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.9% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past 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 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for GreensLtd going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for GreensLtd (1 is a bit unpleasant!) 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.