Asahi Group Holdings, Ltd. (TSE:2502) Half-Yearly Results: Here's What Analysts Are Forecasting For This Year

Asahi Group Holdings, Ltd. (TSE:2502) came out with its half-yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Asahi Group Holdings reported JP¥1.4t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥104 beat expectations, being 2.9% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Asahi Group Holdings

Following last week's earnings report, Asahi Group Holdings' 13 analysts are forecasting 2024 revenues to be JP¥2.94t, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 15% to JP¥396. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.94t and earnings per share (EPS) of JP¥400 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥6,970. 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 Asahi Group Holdings, with the most bullish analyst valuing it at JP¥8,200 and the most bearish at JP¥6,600 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Asahi Group Holdings' revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2024 being well below the historical 7.7% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.9% per year. So it's pretty clear that, while Asahi Group Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Asahi Group Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Asahi Group Holdings going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Asahi Group Holdings .

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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.