Here's What Analysts Are Forecasting For Yamazaki Baking Co., Ltd. (TSE:2212) After Its Interim Results

It's been a mediocre week for Yamazaki Baking Co., Ltd. (TSE:2212) shareholders, with the stock dropping 17% to JP¥3,004 in the week since its latest half-yearly results. Results were roughly in line with estimates, with revenues of JP¥618b and statutory earnings per share of JP¥106. 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 Yamazaki Baking

After the latest results, the six analysts covering Yamazaki Baking are now predicting revenues of JP¥1.26t in 2024. If met, this would reflect a reasonable 2.3% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥186, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥1.26t and earnings per share (EPS) of JP¥184 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥4,533, suggesting that the company has met expectations in its recent result. 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 Yamazaki Baking analyst has a price target of JP¥5,550 per share, while the most pessimistic values it at JP¥3,900. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Yamazaki Baking's growth to accelerate, with the forecast 4.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Yamazaki Baking 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¥4,533, 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. We have forecasts for Yamazaki Baking going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Yamazaki Baking 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.

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