Japan Lifeline Co., Ltd. Just Missed EPS By 6.2%: Here's What Analysts Think Will Happen Next

Investors in Japan Lifeline Co., Ltd. (TSE:7575) had a good week, as its shares rose 7.8% to close at JP¥1,251 following the release of its yearly results. It looks like the results were a bit of a negative overall. While revenues of JP¥51b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.2% to hit JP¥98.73 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 most recent consensus for Japan Lifeline from four analysts is for revenues of JP¥54.0b in 2025. If met, it would imply a modest 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 13% to JP¥114. Before this earnings report, the analysts had been forecasting revenues of JP¥52.6b and earnings per share (EPS) of JP¥106 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of JP¥1,333, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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¥1,550 and the most bearish at JP¥1,150 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Japan Lifeline's growth to accelerate, with the forecast 5.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.3% annually. So it's clear that despite the acceleration in growth, Japan Lifeline is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Japan Lifeline following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Japan Lifeline analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Japan Lifeline's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.