Analysts Have Made A Financial Statement On Resonac Holdings Corporation's (TSE:4004) Third-Quarter Report

Resonac Holdings Corporation (TSE:4004) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. 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. 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 Resonac Holdings

After the latest results, the seven analysts covering Resonac Holdings are now predicting revenues of JP¥1.45t in 2025. If met, this would reflect a credible 5.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 38% to JP¥291. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.45t and earnings per share (EPS) of JP¥280 in 2025. So the consensus seems to have become somewhat more optimistic on Resonac Holdings' earnings potential following these results.

There's been no major changes to the consensus price target of JP¥4,314, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Resonac Holdings at JP¥5,100 per share, while the most bearish prices it at JP¥3,350. 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 Resonac Holdings shareholders.

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. It's pretty clear that there is an expectation that Resonac Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 9.1% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.2% annually. So it's pretty clear that, while Resonac Holdings' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Resonac Holdings' earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 forecasts for Resonac Holdings going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Resonac Holdings (1 is potentially serious!) that we have uncovered.

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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.