Asahi Intecc Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Asahi Intecc Co., Ltd. (TSE:7747) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of JP¥61b arriving 6.0% ahead of forecasts. Statutory earnings per share (EPS) were JP¥20.16, 9.8% ahead of estimates. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Asahi Intecc

Taking into account the latest results, the most recent consensus for Asahi Intecc from 16 analysts is for revenues of JP¥118.8b in 2025. If met, it would imply a satisfactory 3.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 7.4% to JP¥72.15. Before this earnings report, the analysts had been forecasting revenues of JP¥118.5b and earnings per share (EPS) of JP¥71.78 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.

The analysts reconfirmed their price target of JP¥3,377, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Asahi Intecc analyst has a price target of JP¥4,400 per share, while the most pessimistic values it at JP¥2,600. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Asahi Intecc's revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2025 being well below the historical 16% 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) 6.9% annually. Factoring in the forecast slowdown in growth, it looks like Asahi Intecc is forecast to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥3,377, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Asahi Intecc going out to 2027, 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.