Stock Analysis

Here's What Analysts Are Forecasting For ZENKOKU HOSHO Co.,Ltd. (TSE:7164) After Its Yearly Results

TSE:7164
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Last week saw the newest full-year earnings release from ZENKOKU HOSHO Co.,Ltd. (TSE:7164), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of JP„52b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.8% to hit JP„419 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for ZENKOKU HOSHOLtd

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TSE:7164 Earnings and Revenue Growth May 12th 2024

Taking into account the latest results, the consensus forecast from ZENKOKU HOSHOLtd's four analysts is for revenues of JP„55.5b in 2025. This reflects a modest 7.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.5% to JP„459. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP„55.2b and earnings per share (EPS) of JP„456 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„5,950, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on ZENKOKU HOSHOLtd, with the most bullish analyst valuing it at JP„6,500 and the most bearish at JP„5,450 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ZENKOKU HOSHOLtd's past performance and to peers in the same industry. The analysts are definitely expecting ZENKOKU HOSHOLtd's growth to accelerate, with the forecast 7.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.7% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ZENKOKU HOSHOLtd is expected to grow at about the same rate as 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

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

Plus, you should also learn about the 1 warning sign we've spotted with ZENKOKU HOSHOLtd .

Valuation is complex, but we're here to simplify it.

Discover if ZENKOKU HOSHOLtd might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.