Analysts Have Made A Financial Statement On Japan Lifeline Co., Ltd.'s (TSE:7575) Half-Year Report

Shareholders might have noticed that Japan Lifeline Co., Ltd. (TSE:7575) filed its half-year result this time last week. The early response was not positive, with shares down 4.6% to JP¥1,464 in the past week. Results were roughly in line with estimates, with revenues of JP¥15b and statutory earnings per share of JP¥131. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Japan Lifeline's three analysts are now forecasting revenues of JP¥59.7b in 2026. This would be a satisfactory 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 3.4% to JP¥133 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥59.7b and earnings per share (EPS) of JP¥133 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 Japan Lifeline

There were no changes to revenue or earnings estimates or the price target of JP¥1,647, suggesting that the company has met expectations in its recent result. 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. The most optimistic Japan Lifeline analyst has a price target of JP¥1,690 per share, while the most pessimistic values it at JP¥1,600. This is a very narrow spread of estimates, implying either that Japan Lifeline is an easy company to value, or - more likely - the analysts are relying heavily on some key 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 Japan Lifeline's growth to accelerate, with the forecast 6.4% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Japan Lifeline 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥1,647, 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 Japan Lifeline 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.