ZENKOKU HOSHO Co.,Ltd. (TSE:7164) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

ZENKOKU HOSHO Co.,Ltd. (TSE:7164) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues came in 3.3% below expectations, at JP¥11b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥419 being roughly in line with analyst estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for ZENKOKU HOSHOLtd

After the latest results, the five analysts covering ZENKOKU HOSHOLtd are now predicting revenues of JP¥58.6b in 2026. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.9% to JP¥474. In the lead-up to this report, the analysts had been modelling revenues of JP¥58.7b and earnings per share (EPS) of JP¥473 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥6,080. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values ZENKOKU HOSHOLtd at JP¥6,900 per share, while the most bearish prices it at JP¥5,800. 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.

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. The analysts are definitely expecting ZENKOKU HOSHOLtd's growth to accelerate, with the forecast 8.1% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.0% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. ZENKOKU HOSHOLtd is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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.

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 forecasts for ZENKOKU HOSHOLtd going out to 2027, and you can see them free on our platform here.

We also provide an overview of the ZENKOKU HOSHOLtd Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.