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

Japan Lifeline Co., Ltd. (TSE:7575) shareholders are probably feeling a little disappointed, since its shares fell 7.6% to JP¥1,062 in the week after its latest quarterly results. It was a workmanlike result, with revenues of JP¥14b coming in 3.2% ahead of expectations, and statutory earnings per share of JP¥98.73, in line with analyst appraisals. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Japan Lifeline

Taking into account the latest results, the consensus forecast from Japan Lifeline's four analysts is for revenues of JP¥54.5b in 2025. This reflects a satisfactory 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.8% to JP¥114. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥53.9b and earnings per share (EPS) of JP¥115 in 2025. 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¥1,366, 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. There are some variant perceptions on Japan Lifeline, with the most bullish analyst valuing it at JP¥1,500 and the most bearish at JP¥1,300 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Japan Lifeline 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 Japan Lifeline's growth to accelerate, with the forecast 5.2% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.9% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Japan Lifeline is expected to grow slower than the wider industry.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Japan Lifeline's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥1,366, 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. At Simply Wall St, we have a full range of analyst estimates for Japan Lifeline going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Japan Lifeline 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com