Here's What Analysts Are Forecasting For Unicharm Corporation (TSE:8113) After Its Half-Year Results

The half-yearly results for Unicharm Corporation (TSE:8113) were released last week, making it a good time to revisit its performance. It was a workmanlike result, with revenues of JP¥488b coming in 3.1% ahead of expectations, and statutory earnings per share of JP¥37.06, 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Unicharm

After the latest results, the ten analysts covering Unicharm are now predicting revenues of JP¥1.01t in 2024. If met, this would reflect a credible 3.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.0% to JP¥161. Before this earnings report, the analysts had been forecasting revenues of JP¥1.01t and earnings per share (EPS) of JP¥162 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of JP¥5,817, 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 Unicharm analyst has a price target of JP¥6,400 per share, while the most pessimistic values it at JP¥4,600. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Unicharm shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Unicharm'shistorical trends, as the 6.3% annualised revenue growth to the end of 2024 is roughly in line with the 7.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.0% annually. So although Unicharm is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥5,817, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Unicharm. Long-term earnings power is much more important than next year's profits. We have forecasts for Unicharm going out to 2026, 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.