Earnings Update: ZENKOKU HOSHO Co.,Ltd. (TSE:7164) Just Reported Its Half-Yearly Results And Analysts Are Updating Their Forecasts

Last week saw the newest half-year earnings release from ZENKOKU HOSHO Co.,Ltd. (TSE:7164), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of JP¥23b and statutory earnings per share of JP¥237. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, ZENKOKU HOSHOLtd's five analysts are now forecasting revenues of JP¥59.5b in 2026. This would be an okay 2.6% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥239, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥59.7b and earnings per share (EPS) of JP¥241 in 2026. 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.

Check out our latest analysis for ZENKOKU HOSHOLtd

The analysts reconfirmed their price target of JP¥3,576, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic ZENKOKU HOSHOLtd analyst has a price target of JP¥4,300 per share, while the most pessimistic values it at JP¥3,250. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ZENKOKU HOSHOLtd is an easy business to forecast or the the analysts are all using similar assumptions.

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 ZENKOKU HOSHOLtd's revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2026 being well below the historical 10% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.7% annually. Even after the forecast slowdown in growth, it seems obvious that ZENKOKU HOSHOLtd 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥3,576, 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. At Simply Wall St, we have a full range of analyst estimates for ZENKOKU HOSHOLtd going out to 2028, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.