Stock Analysis

Analyst Estimates: Here's What Brokers Think Of Ohsho Food Service Corp. (TSE:9936) After Its First-Quarter Report

TSE:9936
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It's been a sad week for Ohsho Food Service Corp. (TSE:9936), who've watched their investment drop 13% to JP¥7,630 in the week since the company reported its first-quarter result. Results overall were respectable, with statutory earnings of JP¥420 per share roughly in line with what the analysts had forecast. Revenues of JP¥26b came in 2.5% 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Ohsho Food Service

earnings-and-revenue-growth
TSE:9936 Earnings and Revenue Growth August 2nd 2024

Following the latest results, Ohsho Food Service's three analysts are now forecasting revenues of JP¥107.5b in 2025. This would be a credible 4.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.3% to JP¥414. In the lead-up to this report, the analysts had been modelling revenues of JP¥107.5b and earnings per share (EPS) of JP¥422 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.

The analysts reconfirmed their price target of JP¥9,700, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Ohsho Food Service at JP¥10,000 per share, while the most bearish prices it at JP¥9,100. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ohsho Food Service's past performance and to peers in the same industry. It's clear from the latest estimates that Ohsho Food Service's rate of growth is expected to accelerate meaningfully, with the forecast 5.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.8% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Ohsho Food Service is expected to grow slower 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. At Simply Wall St, we have a full range of analyst estimates for Ohsho Food Service going out to 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 Ohsho Food Service 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.